USD/MXN trade higher today during the European morning, breaking above the 19.69 barrier, marked by the highs of Jun. 8 and 9. Given that the pair has already printed a higher low on the daily chart, marked by the low of Jun. 6, we would see decent chances for the rate to complete a bullish reversal soon.
In our view, this will happen upon a break above 19.78, marked by the high of Jun. 1. The bulls could then get encouraged to push the action towards the 19.94 barrier, defined as resistance by the high of May 24, where another break could extend the advance towards the 20.07 area, marked by the highs of May 18 and 19.
Shifting attention to our short-term oscillators, we see that the RSI got closer to its 70 line but turned down, while the MACD remains above its zero and trigger lines. Both indicators detect upside speed, which supports the notion for further advances, but the fact that the RSI ticked down makes us careful over a possible setback before the next leg north.
On the downside, we would like to see an apparent dip below 19.53 before we abandon the bullish case. This could initially aim for the low of Jun. 6, at 19.47, or the low of May 30, at 19.41. O break lower would take the rater into territories last seen in 2020, with the following support perhaps being the 19.29 level, marked by the inside swing high of Feb. 24 of that year.