Mexican peso hits its highest level in a month, looking at 19.00

• US Dollar remains weak against Emerging Markets currencies.
• USD/MXN testing 2022 lows near 19.10, closer to 19.00.
• Bearish pressure to alleviate above 19.50

The USD/MXN is falling again on Tuesday as it continues to move with a bearish bias, approaching the 19.00 psychological area. Earlier today it bottomed at 19.08, the lowest level in a month and slightly above the 2022 low it hit in November.

The bias is bearish in USD/MXN but it is facing a strong resistance area between 19.10 and 19.00. Technical indicators are near oversold readings which could suggest some consolidation ahead before a break lower. A candidate for the range is the 19.00-19.30 band or a wider one between 19.00 and 19.50.

The strength of the Mexican Peso is likely to remain intact while USD/MXN trades under 19.50. The initial resistance level is seen at 19.30. Then comes the 20-day Simple Moving Average, currently at 19.47 and then the 19.50 area. A break above 19.60 would point to more gains for the US Dollar, targeting 19.80.

USD/MXN daily chart