EUR/MXN may fall 2103 - 3110 pips

Our pivot point is at 19.8884.

Our preference

The downside prevails as long as 19.8884 is resistance.

Alternative scenario

Above 19.8884, look for 20.0577 and 20.1585.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 19.7977 and 19.7967). Finally, the EUR/MXN has penetrated its lower Bollinger band (19.7580).

Supports and resistances

20.1585 **

20.0577 *

19.8884 **

19.8219

19.7410 last

19.5307

19.4300 **

19.3294 *

19.2287 **

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