#USDMXN @ 20.0768 moving between 20.20 and 19.80 since mid-August. (Pivot Orderbook analysis)

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• USD/MXN moving between 20.20 and 19.80 since mid-August.
• Mexican peso fails to break 19.80, and reverses.
• Stocks turn lower in Wall Street, supporting the dollar.

The pair currently trades last at 20.0768.

The previous day high was 20.0909 while the previous day low was 19.9088. The daily 38.2% Fib levels comes at 19.9784, expected to provide support. Similarly, the daily 61.8% fib level is at 20.0214, expected to provide support.

The USD/MXN is up on Thursday amid a stronger US dollar across the board. The pair is trading at 20.07, at the highest intraday level. Wall Street is turning from neutral to bearish, favoring the greenback.

On the upside, the immediate resistance is seen at 20.10 (Sep 8 and 13 high). A consolidation above could point to further gains and a test of the critical area between 20.17 and 20.20. A daily close above 20.20 would be a positive technical development suggesting more gains ahead, targeting the 20.45 area.

On the flip side, the first support stands at 19.95, but a more significant barrier is located at 19.90. The key area is 19.80 and a break lower would put USD/MXN on its way toward 19.70.

Following many US economic reports (jobless claims, retail sales, Philly Fed and industrial production) on Thursday and particularly the CPI on Tuesday, attention now sets on the FOMC meeting next week. The central bank is expected to raise interest rates by 75 basis points on Wednesday. Banxico is expected to follow on September 29.

Technical Levels: Supports and Resistances

USDMXN currently trading at 20.0497 at the time of writing. Pair opened at 19.9422 and is trading with a change of 0.54 % .

The pair is trading above its 20 Daily moving average @ 20.0249, below its 50 Daily moving average @ 20.2453 , below its 100 Daily moving average @ 20.1529 and below its 200 Daily moving average @ 20.3075

The previous day high was 20.0909 while the previous day low was 19.9088. The daily 38.2% Fib levels comes at 19.9784, expected to provide support. Similarly, the daily 61.8% fib level is at 20.0214, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.8704, 19.7985, 19.6882
• Pivot resistance is noted at 20.0525, 20.1628, 20.2346

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