USD/MXN: Testing Support Within a Tight Range

Chart Analysis:

USD/MXN remains stuck in sideways consolidation, with price action respecting both rising trendline support and overhead resistance at 20.80.

1️⃣ Support and Resistance Levels Holding:

Key resistance at 20.80 has repeatedly capped rallies, preventing a breakout.

Trendline support near 20.40 continues to hold, but a breakdown could open the door to further downside.

2️⃣ Moving Averages Provide Guidance:

50-day SMA (20.42): Acting as a dynamic support zone.
200-day SMA (19.28): Remains well below, reinforcing a longer-term bullish bias.

3️⃣ Momentum Indicators Show Lack of Conviction:

RSI: 48.64, indicating neutral momentum with no clear direction.
MACD: Barely above zero, reflecting a lack of strong trend momentum.
What to Watch:

A breakout above 20.80 could trigger fresh upside, targeting 21.00+.

A break below 20.40 would signal a potential reversal toward the 20.00 handle.

Sideways price action remains dominant, awaiting a catalyst for direction.

USD/MXN continues to coil within a tight range, leaving traders watching for a decisive breakout or breakdown.

-MW