USD/MXN tumbles towards strong support at 19.9048/6215 – Commerzbank

USD/MXN has tumbled to the 78.6% Fibonacci retracement at 20.0756 below which is good support at 19.9048/6215, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

Key quotes

“USD/MXN continues to slide and hit the 78.6% Fibonacci retracement at 20.0756. In this area the cross may stabilise. Should this not be the case, more significant support between the December 2017, September 2018, March, June, late September and November 2019 highs as well as the 200-week moving average at 19.9048/6215 could be reached but would be expected to hold.” 

“Resistance above the 20.8310/8437 September and October lows comes in between the June trough and the 55-day moving average at 21.4383/4609 and also at the current November peak at 21.9803. While it caps on a daily chart closing basis, overall downside pressure should retain the upper hand.”