USD/MXN to stay bid near-term – Commerzbank

Commerzbank analysts suggest that USD/MXN pair has continued to hold over the January low at 18.8787 and the 10 month uptrend at 18.9887 and the 5 year uptrend at 19.06 and the market looks capable of retesting the 200 day ma at 19.4494.

Key Quotes

“While capped here the bias is still neutral to negative and below here will target the mid-October low at 18.7312 and the August and October troughs as well as the 200 week moving average at 18.4910. This area we expect to hold. Should this not be the case, we would also expect the April 2018 low at 17.9399 to be reached.”

“Resistance above the 200 day ma is offered by the Feb high at 19.4722 and also at the 19.6855 September high. Key resistance remains to be seen at the 20.4720/6574 October-to-December highs.”