USD/MXN Price Analysis: Mexican peso loses momentum after finding support at 18.80

• USD/MXN with a bullish intraday bias, bearish in the long term.
• Correction from levels above 19.00, finds support at the 18.80 zone.
• US Dollar mixt on Tuesdays gains momentum after US data.

The USD/MXN is rising on Tuesday, after a two-day correction of the rally from multi-year lows near 18.55 (January 18) to 19.11 (January 19). The decline found support around the 18.80 zone and bounced toward 18.90.

The pair is trading at daily highs at 18.88 following the release of the US S&P Global PMI report that came in above expectations boosting the US Dollar across the board amid higher Treasury bond yields. At the same time, Emerging Market currencies, like the Mexican Peso lost further strength on the back of a deterioration in market sentiment and lower commodity prices.

The Mexican Peso needs to break and hold below 18.80, in order to regain strength. The next support stands at 18.65 followed by the recent bottom near 18.55.

The daily chart shows the main trend is bearish but technical indicators are modestly biased to the upside in the short term, suggesting some consolidation ahead that could be between 18.80 and 19.00, or with a higher limit at 19.11, a horizontal level and the 20-day Simple Moving Average. A break above would strengthen the US Dollar.

USD/MXN daily chart