USDMXN holds bearish bias, but strong support at 19.30 prevails
The USDMXN is trading flat on Tuesday, after hitting the lowest intraday level since March 2020 at 19.24, following the release of the October US Producer Price Index. The greenback reversed sharply after a few minutes and gained momentum across the board. The pair rose back above 19.30. The area around 19.30 is the critical support in the short-term.
A daily close below keep the doors open to more losses with the next key area at 19.00/05 (intermediate support at 19.15). The RSI is moving away from oversold readings but not showing yet an upside slope. Momentum remains flat. While above 19.30, losses seem limited for USDMXN. Still the outlook is constructive for the Mexican peso. Only a recovery above 19.60 would alleviate the bearish tone for the greenback. Before that area, there is a resistance at 19.45.