USD/MXN Price Analysis: Back to 21.00, looking for a slide to test September lows

• Mexican peso continues to move with a bullish bias versus the US dollar.
• USD/MXN dropped momentarily below 21.00, the next obstacle emerges at the 20.85 zone.

The USD/MXN is falling for the third consecutive day on Thursday, still at a gradual pace. Recently it printed a fresh monthly low at 20.97 and it is hovering around 21.00.

A consolidation below 21.00 should open the doors to more losses and to a test of the September lows around 20.85. Below there is not much support until 20.25. Technical indicators favor the downside.

The bearish momentum in USD/MXN would ease with a recovery above 21.20 but only if it holds above 21.40, it could suggest an interim bottom. The negative outlook for the dollar would be negated with a break above 22.50.

USD/MXN daily chart