USD/MXN Price Analysis: Mexican peso heavies after surge in coronavirus death toll

• USD/MXN stalls pullback from record top.
• Mexico registers 296 new coronavirus cases, 125 deaths on Monday.
• A confluence of 5-day SMA, one-week-old rising trend line limits immediate declines.
• Buyers will wait for entry for a sustained move beyond March high.

Following its U-turn from the record top, USD/MXN registers 0.15% gains to 24.66 amid the Asian session on Tuesday. The surge in Mexico’s coronavirus (COVID-19) statistics seems to be the latest catalyst propelling the pair.

Reuters relied on the Mexican Health Ministry updates to convey that Mexico has registered 296 new coronavirus infections, bringing the country’s total to 2,493 cases and 125 deaths.

As a result, the pair bounces off 5-day SMA level, needless to mention the short-term rising trend line, which limits the pair’s immediate declines.

Even so, buyers will wait for sustained trading beyond the previous month’s high of 25.46 for a clear move above 26.00.

On the downside, an area comprising immediate SMA and support line near 24.57/47 will question the sellers during the fresh declines.

 In a case where the USD/MXN prices slip below 24.47, a 21-day SMA level of 23.56 becomes the key as it holds the gate for further south-run to March 27 low close to 22.86.

USD/MXN forecast chart

Trend: Bullish