USD/MXN Price Analysis: Testing critical support around 19.30
- Mexican peso rises again versus US dollar.
- USD/MXN tests critical support around 19.25/30.
- Upside remains limited while under 19.55/60.
The USD/MXN is falling on Wednesday for the second day in a row, amid a weaker US Dollar and ahead of the release of the FOMC minutes. The pair is pulling back after the upside was capped by the 19.60 horizontal resistance and the 20-day Simple Moving Average at 19.55.
Recently USD/MXN bottomed at 19.32, the lowest level in six days. So far the pair has been able to remain above the critical support area around 19.25/30. Below that area, the next target is seen at 19.00/05, with an intermediate resistance at 19.15.
Technical indicators are turning south again. RSI is moving to the downside but far from the 30 level. Price holds below key moving averages. A consolidation between 19.30 and 19.60 over the next sessions seems likely.
The Dollar needs to break and hold above 19.60 in order to improve the outlook. A daily close above would point to more gains, toward the next barrier at 19.80.