USD/MXN Price Analysis: Mexican peso breaks 20.00, tests levels under 19.90

• USD/MXN breaks key short-term supports, looks for 19.80
• Despite the rally versus USD, the Mexican peso is far from being a top EM performer.

A sharp decline of the US dollar across the board pushed the USD/MXN under 20.00. After breaking the 20.05/00 barrier, the price dropped to 19.85, hitting the lowest level since April 29.

The USD/MXN is testing levels under 19.90, and if it holds below, a decline targeting 19.80 seems likely. Technical indicators favor further losses at the moment. The April floor at 19.75/80 should offer support. A break lower should expose the 19.50 area.

A recovery back above 20.00/05 is needed for the greenback to alleviate the bearish pressure. Above the next resistance stands at 20.15, followed by the critical  20.30.

The USD/MXN is ending Friday on a weak note, driven by a decline of the dollar. Just one day ago, it was testing the 20.30 resistance; now it is back under the 20-day moving average.

USD/MXN daily chart