USD/MXN Price Analysis: Mexican peso at nine-month highs, looks to 19.70

• Mexican peso keeps rising versus the US dollar, hit highest since July 2021.
• USD/MXN shows oversold readings but no significant sign of consolidation.
• Price remains under the 200-week SMA at 20.15.

The USD/MXN opened the week falling back under 19.80, after posting the third weekly decline in a row. The bearish bias remains intact, with the pair looking to test 19.70 in the short-term and near the critical support area of 19.55.

The US dollar needs to recover levels above 19.85 to alleviate the immediate bearish pressure, favoring some consolidation. While under 20.15, moves to the upside could look unstable; a weekly close above could suggest a temporal bottom has been established.

The fact that USD/MXN has fallen in seventeen out of the last nineteen trading days puts in perspective how far the Mexican peso’s rally has gone. Technical indicators like RSI under 30 show oversold levels. Despite the descriptions, no significant signs of a reversal or stabilizations are noted yet as the cross keeps breaking support levels.

A consolidation under 19.70 should keep the doors open to further losses. The next medium-term solid support is seen at 19.55, the 2021 low before an interim level at 19.65.

USD/MXN daily chart