USD/MXN Price Analysis: Sharp reversal of the US Dollar, rises toward 19.50
- Mexican peso among worst performers on Wednesday.
- USD/MXN reverses sharply to the 20-day SMA.
- Volatility to remain elevated amid market events and current price levels.
The USD/MXN is rising sharply on Wednesday, having the biggest daily gain in months after posting on Tuesday the lowest daily close since February 2020. The US Dollar is strengthening ahead of Federal Reserve Chairman Jerome Powell speech while the Mexican Peso is the worst among the most traded currencies in the world.
On Tuesday, the USD/MXN bottomed at 19.03 and then started to rise. After a correction during the Asia session, the pair resumed the upside even at a fastest pace. It peaked at 19.45 and remains near the top with the bullish tone intact.
The sharp reversal sent the US Dollar to the 20-day Simple Moving Average that stands at 19.43. A consolidation above would likely open the doors for a test of the next resistance area at 19.60. Although at 19.52 an interment resistance is seen.
The technical outlook has deteriorated significantly for the Mexican Peso. Technical indicators such as Momentum and RSI, at the moment, point north favoring further gains. A slide back under 19.25/30 could change the outlook exposing again the 19.00/05 support area.