USD/MXN: Downside pressure to remain as long as below 19.37 - Commerzbank

Analysts at Commerzbank, point out that the USD/MXN pair is trying to stabilize above last week’s low at 18.68 while a break lower could lead to a slide to test the 18.44/18.30 zone.

Key Quotes: 

“USD/MXN tries to short-term stabilize above last week’s low at 18.6838, made slightly above the late August low at 18.6040. Were these levels to give way, the July low at 18.4990 would be eyed next. Further down sits strong support at 18.4487/18.3090, made up of the November low and the January and February troughs. This area should underpin, if retested that is.”

“Minor resistance comes in along the 200 day moving average at 19.0586, the 19.1549/19.1681 May 11 low and mid-July high and also at the 19.3747 August peak. While remaining below the latter level, medium-term downside pressure should retain the upper hand.”

“If support at the next lower 18.3090 February low were to be slipped through on a daily chart closing basis, the April trough at 17.9399 would be in the frame.”