USD/MXN Price Analysis: Sixth consecutive daily decline, Mexican peso approaches a key short-term line

• Mexican peso remains among the top performers of the week.
•  USD/MXN testing the 19.95 area, looking at uptrend line.

The USD/MXN is falling on Wednesday, before the FOMC statement, for the sixth consecutive day. It is hovering below the 19.97 zone that contains the 20 and 55-day moving average. A daily close around the current level would open the doors for a test of an uptrend line from June lows, currently at 19.88.

Price is near strong support areas that could prompt a recovery of the dollar. However, a slide under 19.88 would expose the next support areas at 19.80 and 19.70. Technical indicators point to the downside, particularly if it holds under 19.95. Momentum (daily) is breaking under 100 and the RSI is flat around 50.

A recovery above 20.05 would alleviate the bearish pressure while a consolidation north of 20.10 should strengthen the greenback for a test of the 200-day moving average (20.19).

USD/MXN daily chart