USD/MXN Price Analysis: Mexican peso about to test 2022 highs

• Mexican peso rises versus the US dollar for the ninth time out of the last ten days.
• USD/MXN stays bearish, about to test critical support at 2022 lows.
• The 19.90 area is not the immediate resistance.

 The USD/MXN continued its decline on Monday and dropped to 19.77, reaching the lowest level since April 19. The outlook points to a test of the year-to-day low at 19.72. A daily close below 19.70 would point to the next strong support around 19.50.

Despite falling constantly during the last two weeks, technical indicators in the daily chart favor the downside, with the RSI pointing south and above 30. Momentum is firm in negative territory. The Mexican peso has in front the 19.70 area that could be hard to break. If it fails to break lower a rebound seems likely.

In the short-term, USD/MXN could likely moved sideways between 19.90 and 19.70. The 19.90 zone has become the immediate resistance. Above the next level to watch is 20.05. If the dollar rises above the 20-day Simple Moving Average, today at 20.19, the bearish outlook would be negated.

USD/MXN daily chart