Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Mexican Peso Latest: USD/MXN Struggles due to US Dollar Indecision

Mexican Peso Latest: USD/MXN Struggles due to US Dollar Indecision

Nick Cawley, Senior Strategist

Share:

What's on this page

Mexican Peso (USD/MXN) Price, Analysis and Chart:

  • USD/MXN mixed messages taint the pair’s outlook.
  • US dollar likely to determine the next move.
Top Trading Lessons
Top Trading Lessons
Recommended by Nick Cawley
Find Out the No.1 Mistake Traders Make
Get My Guide

USD/MXN Going Nowhere in the Short-Term

The next move in the US dollar will be the catalyst for USD/MXN with the pair currently trading in a narrow range. Price action over the last three days has been limited with Tuesday’s bullish candle keeping the pair in check for now. The sell-off in the US dollar basket (DXY) seen this month has slowed and while the greenback looks oversold it is struggling to move higher. The sharp increase in new COVID-19 cases in the South of the USA is weighing down on risk sentiment and may eventually lead to a USD bid as the safe-haven currency of choice. Countering this, the daily chart remains weak with the greenback below all three moving-averages, adding to the recent negative sentiment.

US Dollar Basket (DXY) Daily Price Chart (December 2019 – July 10, 2020)

If you are interested in technical analysis, please see our updated Education Centre for a comprehensive range of indicators and analytical articles.

USD/MXN currently sits between two Fibonacci retracement figures, the 50% level at 22.153 and the 38.2% level at 23.009. The pair may find some further upside after breaking and opening above the 50-dma (blue line) while the 20-dma (red line) is currently being tested to the upside. A break above 38.2% Fib would see the multi-week high at 23.23 the next likely level of resistance, while a move below Fib support would bring 21.85 into play. A period of consolidation is expected in the short-term as the US dollar decides its next move.

USD/MXN Daily Price Chart (December 2019 – July 10, 2020)

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Nick Cawley
How are Retail Traders Positioned at the Moment?
Get My Guide

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on USD/MXN – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES