USD/MXN may rise to 20.4670 - 20.9718

Our pivot point is at 18.4788.

Our preference

The upside prevails as long as 18.4788 is support.

Alternative scenario

The downside breakout of 18.4788 would call for 17.6449 and 17.1486.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.2686 and 17.8644). Finally, the USD/MXN is trading above its upper Bollinger band (standing at 19.2941).

Supports and resistances

21.9812 **

21.4765 *

20.9718 **

20.4670

19.3680 last

18.8064

18.4788 **

17.6449 *

17.1486 **

Number of asterisks represents the strength of support and resistance levels.