USD/MXN: Good support sits at 19.9048/6215 – Commerzbank

The USD/MXN pair weighs on the 20.0756/0337 support area below which lies more support at 19.9048/6215, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports. 

Key quotes

“USD/MXN weighs on the 78.6% Fibonacci retracement at 20.0756 and the current November low at 20.0299 with more significant support seen between December 2017, September 2018, March, June, late September and November 2019 highs as well as the 200-week moving average at 19.9048/6215 thus being targeted. We expect this major support area to hold. If not, the April, October and November 2017 highs at 19.3736/2961 would be eyed.” 

“Resistance above the 20.6927/8437 September and October lows and November 13 high comes in between the June trough and the 55-day moving average at 21.1656/4609 and also at the current November peak at 21.9803. While it caps on a daily chart closing basis, overall downside pressure should retain the upper hand.”