Time4VPS - VPS hosting in Europe

Mexican Peso Outlook: USD/MXN Bears Tire Near Downtrend Support

Mexican Peso Technical Price Outlook: USD/MXN Near-term Trade Levels

  • Mexican Peso updated technical trade levels – Daily & Intraday Charts
  • USD/MXN decline fails to hold below support – risk for bear market recovery
  • Key near-term resistance 20.6301 – decline vulnerable into 19.8794

The US Dollar plummeted more than 9.2% off the monthly highs against the Mexican Peso with USD/MXN now probing longer-term technical support. While the broader outlook remains weighted to the downside, the bears may be vulnerable near-term just above downtrend support. These are the updated targets and invalidation levels that matter on the USD/MXN technical price charts. Review my latest Strategy Webinar for an in-depth breakdown of this Peso setup and more.

Starts in:

Live now:

Nov 30

( 13:11 GMT )

Live Weekly Strategy Webinars on Mondays at 12:30GMT

Weekly Scalping Webinar

Register for webinar

Join now

Webinar has ended

Mexican Peso Price Chart – USD/MXN Daily

Mexican Peso Price Chart - USD/MXN Daily - Dollar vs Peso Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; USD/MXN on Tradingview

Technical Outlook: In my last Mexican Peso Price Outlook we noted that USD/MXN was probing a key support zone at the, “2019 high-day close / Fibonacci support at 20.0752/1360 – looking for inflection off this threshold.” Price closed last week just below this threshold with reversal candle today threatening a recovery within the broader downtrend.

Initial daily resistance eyed at the 75% parallel (currently ~20.6500) backed by the September low at 20.8377- broader bearish invalidation steady at 21.2317/2942. Look for a close below the June 2019 highs at 19.8794 to mark resumption with such a scenario exposing the 88.6% Fibonacci retracement at 19.3497.

Mexican Peso Price Chart – USD/MXN 120min

Mexican Peso Price Chart - USD/MXN 120min - Dollar vs Peso Trade Outlook - Technical Forecast

Notes: A closer look at Peso price action shows USD/MXN continuing to trade within the confines of a near-term descending pitchfork formation extending off the June / September highs. A brief test of the monthly lows failed today with price attempting to close higher on the day. Initial resistance 20.4336 with a breach above 20.6301 needed to suggest a larger reversal is underway. Initial support steady at 19.8794 backed by the lower parallel / 19.6591– use caution, a break below this threshold would likely fuel accelerated losses for the dollar.

USD Forecast

USD Forecast

Recommended by Michael Boutros

Download Our Latest Quarterly US Dollar Price Forecasts!

Get My Guide

Bottom line: Mexican Peso is carving the weekly opening-range just above downtrend support and while the broader risk remains lower, the immediate decline may be vulnerable here. From a trading standpoint, a good zone to reduce short exposure / lower protective stop – be on the lookout for downside exhaustion while above 19.6591 with a breach / close above 20.6301 needed to shift the focus higher in USD/MXN.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Key US / Mexico Data Releases

Key US / Mexico Data Releases - USD/MXN Economic Calendar- Key Peso Event Risk

Economic Calendarlatest economic developments and upcoming event risk.

Active Technical Setups

— Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

Leave a Reply