FxNews—As expected, the USD/MXN pair returned above the 20.22 mark. This increase in the Greenback’s price was expected because the Stochastic Oscillator was hovering in the oversold territory. As of this writing, the American dollar trades at approximately 20.29, stabilizing above the 100-period simple moving average.
USDMXN Technical Analysis
As for the technical indicators, the Awesome Oscillator histogram is green and rising, meaning the bear market weakens. Additionally, the Stochastic Oscillator stepped outside the oversold territory, depicting 34 in the description and rising.
Overall, the technical indicators suggest the primary trend is bullish and should resume.
USDMXN Price Forecast
The immediate resistance is at 20.37, backed by the bearish fair value gap. From a technical perspective, the uptrend will likely resume if the USD/MXN closes and stabilizes above the resistance. In this scenario, the next bullish target could be revisiting the 20.58 mark, backed by the 78.6% Fibonacci level.
On the other hand, the bearish wave from 20.693 could extend to the 23.6% Fibonacci level (20.0) if USD/MXN prices dip below the immediate support (20.14).
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
