FXStreet reports that Axel Rudolph, Senior FICC Analyst at Commerzbank, suggests that the USD/MXN pair targets the May low at 19.7191 – a slip through which would eye the January trough at 19.5488.

“USD/MXN’s bearish reversal from its current June high at 20.2139 put the May low at 19.7191 back on the plate. Once slipped through, the December-to-January lows at 19.7002/19.5488 will be targeted but may well hold once more.” 

“Below the 19.7002/19.5488 area, the 2017-2021 support line can be found at 19.0759.” 

“We will retain our bearish medium-term forecast while the currency pair remains below the May high at 20.3300.” 

“Above the May high at 20.3300 meanders the 200-day moving average at 20.4801."