USDMXN is bearish despite extreme oversold readings. (Pivot Orderbook analysis)

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• USDMXN is bearish despite extreme oversold readings.
• The next target is seen at the 19.20/25 support area.
• Recovery above 19.50 to alleviate bearish pressure.

The pair currently trades last at 19.45.

The previous day high was 19.5784 while the previous day low was 19.4321. The daily 38.2% Fib levels comes at 19.488, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.5225, expected to provide resistance.

The USDMXN is trading at 19.46, after matching the lowest intraday level since March 2020. Earlier on Tuesday, it rose to 19.50 but then turned to the downside amid a sharp decline of the US Dollar across the board, on US Election Day and ahead of US and Mexico inflation data. On Thursday, Banxico will decide on monetary policy.

The USDMXN is looking comfortable below 19.50, holding a solid negative bias and with the doors open to more losses even as technical indicators in the daily chart show oversold conditions. Below 19.42, the next barrier is seen around 19.20/25 which if reached could trigger a rebound.

The greenback needs to recover firm above 19.50 to alleviate the bearish pressure and point to some consolidation ahead, most likely between 19.50 and 19.70. If the move extends to levels above 19.80, it would suggest a return to the 19.80-20.00 range.

Technical Levels: Supports and Resistances

EURUSD currently trading at 19.45 at the time of writing. Pair opened at 19.4466 and is trading with a change of 0.02 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 19.8728, 50 SMA 19.9859, 100 SMA @ 20.1339 and 200 SMA @ 20.1836.

The previous day high was 19.5784 while the previous day low was 19.4321. The daily 38.2% Fib levels comes at 19.488, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.5225, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 19.393, 19.3394, 19.2468
• Pivot resistance is noted at 19.5393, 19.6319, 19.6855

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