Sharp decline after being unable to break 20.25

• USD/MXN fails to break critical resistance at 20.25.
• Below 20.00, next strong support stands at 19.80.

The USD/MXN is falling sharply on Friday, amid a broad-based decline of the US Dollar. The decline of the pair takes place after being unable to break a key resistance area around 20.25.

So far, USD/MXN bottomed at 19.92 and is it about to test the 19.90 short-term support. Technical indicators favor the downside, with RSI turning shout, like Momentum which still remains above 100. Price is back under the 20-day Simple Moving Average.

Since mid-August, the pair is moving sideways in a range between 19.80 and 20.25. If reached, the 19.80 zone is likely to offer a rebound. A break lower, would point to the next support around 19.65.

The 20.25 has become critical to the upside. A break above should clear the way to more gains, targeting initially the 20.45 zone.

USD/MXN daily chart