USD/MXN Continues To Slide Lower As Supportive Moving Averages Break

USD/MXN – SHORT-TERM BEARISH SEQUENCE DEVELOPING

USD/MXN is currently trapped between a range of technical indicators and further losses may be likely if current price action continues to play out. The supportive short-term uptrend off the June low has now been broken and opened below, while the pair have also dropped through both the 20- and 50-day moving averages, adding the bearish sentiment. In addition, this week the pair have made an unbroken series of lower highs, adding to the prevailing negative sentiment. Below, there are a cluster of recent lows that may provide short-term support before the 50% Fibonacci retracement level of 22.153 comes into play. Below here, 21.86 becomes the next area of interest.

To regain a bullish bias, USD/MXN needs to reclaim both the moving averages, open and consolidate above the short-term uptrend and take out Monday’s high at 23.24.

USD/MXN DAILY PRICE CHART (DECEMBER 2019 – JULY 3, 2020)

(Click on image to enlarge)

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