• Outlook continues to favor the Mexican peso in the short term.
• Losses are limited while above 19.50.
• Immediate resistance levels at 19.60 and 19.72.

The USD/MXN keeps a bearish tone in the short-term. The downside remains limited by the 19.50 support area. A consolidation below the mentioned zone would expose last week’s low at 19.41 and below the next support area at 19.30.

So far during the current week, USD/MXN is moving sideways, consolidating between 19.50 and 19.60. If the dollar manages to rise and hold above 19.60 it could head to test the next significant barrier around 19.71.

A daily close above 19.75 would alleviate the bearish pressure and if the recovery extends above 19.82, the outlook should change to neutral, increasing the odds of a recovery toward 20.00.

Technical indicators in the short-term are starting to favor the upside. The daily RSI is moving slowly away from 30 while Momentum (still under 100) is moving north.

USD/MXN daily chart