USD/MXN Technical Analysis: Oversold but not signals of a correction as the Peso remains strong near 19.00

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  • The Mexican peso continues to rise against the US dollar boosted by external and domestic factors; since early December rose more than 5%. 
  • The USD/MXN pair holds a clear bearish bias. Short-term technical indicators are showing oversold reading, but so far no signals of a correction are seen. 
  • If the pair drops below 19.15, the next target is 19.00/05, a horizontal level and also a dynamic resistance level. A close below, would clear the way for a slide to 18.85, the next barrier. 
  • To the upside, 19.25 is now the immediate resistance followed by 19.35 and then 19.50. Approximations to 19.50 with the current configuration could be seen as an opportunity to add to bearish positions. A firm break above 19.55 will likely add to US dollar strength. 

USD/MXN Daily