USD/MXN near December highs, testing key resistance

The Mexican peso is among the worst performers in the currency market during the last seven days. USD/MXN today climbed back toward the 20.80 zone. 

The pair rose from 20.60 to 20.77. It was trading at 20.75, up 0.72% for the day. From the level it had a year ago, USD/MXN is up 20%. 

Back to test key resistance 

The pair is back near the 20.80 resistance zone. The greenback traded on top of that area last week but it failed to consolidate. If USD/MXN manages to break and hold above 20.80 it could open the doors for a test of 21.00. 

The short-term tone continues to favor the upside, but the pair needs to break the 20.80 barrier in order to clear the way to further gains. If it is unable to rise further a bearish correction seems likely. The area around 20.55/20.60 arises as a key support, it is a horizontal level and also where a short-term uptrend line stands. A break lower, could target 20.30/35.