USD/MXN Price Analysis: Rally loses momentum, still bullish

• USD/MXN is correcting lower after Tuesday’s rally.
• Still looking at 20.80/21.00, but signals are mixed.

The USD/MXN is falling sharply, after having on Tuesday the best day in weeks. The pair peaked at 20.82 and then started to move to the downside. The 20.80 zone has become a strong barrier and a consolidation above should open the doors to 20.90. Above attention would turn to 21.00. A daily close above 21.00 would strengthen the bullish outlook.

If the bearish correction extends, a support area emerges at 20.45 and below at 20.25. A break under 20.25 would negate the bullish bias, exposing 20.00.

Technical indicators area mixed, with Momentum and the RSI moving around midlines, undecided. Price is near flats 20 and 200-day Simple Moving Averages.

USD/MXN Daily chart

On the weekly chart, USD/MXN continues to be unable to post a close above 20.60 which should point to further gains in the medium term.

USD/MXN weekly chart