USD/MXN Price Analysis: Mexican peso recovers strength after rejection from above 21.00
|- Mexican peso rises versus US dollar on Monday amid improvement in risk sentiment.
- Bias in USD/MXN keeps favoring the upside; the dollar faces resistance at 21.00.
The USD/MXN is hovering around 20.65, at the lowest level since Wednesday. It is correcting lower after being rejected from above 21.00. The main trend in the short-term continues to point to the upside. A consolidation above 21.00 is needed to clear the way to more gains. Resistance levels above might be seen at 21.10 and 21.30, before the strong barrier of 21.50.
Technical indicators in the daily chart point to some consolidation ahead, with the odds of further correction. The area of 20.50 is the next support that should limit the downside, probably favoring a rebound.
The critical support for the bullish perspective is at 20.05, an uptrend line and also the 55-day simple moving average. A break lower would negate the upside bias, leaving the USD/MXN vulnerable to more losses. An intermediate support is spotted at 20.30 (20-day moving average).
USD/MXN daily chart
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