USD/MXN Price Analysis: Is it over for the Mexican peso?

• US dollar strengthens versus Mexican peso as stocks slide.
• Signs of exhaustion in the USD/MXN decline.
• Recovery above 20.30 to boost the US dollar further.

The USD/MXN is rising on Monday for the first in almost a week, after making a rebound from six-month lows. On Friday, the pair bottomed at 19.90 and then trimmed losses, ending the week away from the bottom, creating a sign of exhaustion to the downside.

On Monday, USD/MXN is rising further from the multi-month low, adding more credibility to the bearish exhaustion. The dollar peaked at 20.17 and then pulled back modestly. The greenback needs to rise back and hold above 20.30, in order to gain support.

The next key level stands at 20.41, the 200-day Simple Moving Average; above, the scenario could change from bearish to neutral. The following level to consider is 20.60.

A decline back under 20.10 should be a positive development for the MXN that could drop further to test 19.90, reinforcing the downside bias. The next support is the 19.80/85 area, a strong barrier that if hit over the next sessions, could prompt profit-taking, favoring a rebound back to 20.00.

USD/MXN daily chart