USD/MXN Price Analysis: Downside limited while above 21.10
- Mexican peso losses momentum against US dollar, holds positive bias.
- USD/MXN rebounds from key support area at 21.15.
The USD/MXN is rising on Tuesday for the second day in a row, at a modest pace. It continues to rebound from the 21.15 support line. A consolidation under 21.10 is needed to clear the way to more losses, for a test of the September low at 20.84.
The current bias favors an extension of the rebound in USD/MXN that could gain momentum if it breaks above 21.50. The next target would be the 20-day moving average at 21.65. The next resistance is seen at 21.95.
While the bias points to the downside, above 21.10 the odds of a rebound will remain high. A break of 22.35 would negate the positive outlook for the Mexican peso.
USD/MXN daily chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
