USD/MXN Price Analysis: Pair tests 20.20 as Mexican peso loses momentum

• USD/MXN main trend is bearish, short-term supported at 19.90 and 19.70.
• US dollar set to strengthen if it holds above 20.20.

The USD/MXN pair is rising for the fourth consecutive day and is it is holding firm above the 20-day moving average. The US dollar gained momentum on Monday after holding above 20.00 and it is testing the 20.20/25 resistance.

The main trend in USD/MXN is bearish, although in the short-term technical indicators favor the upside. The next strong resistance is seen at 20.75, a horizontal level and the 55-day simple moving average. It if it breaks above, a test the eight-month downtrend line, today at 21.30, seems likely.

A slide back below 19.95 would weaken the US dollar. The next support is located at 19.90 and below the December low around 19.70. A consolidation under 19.70 would target 19.55/60.

USD/MXN daily chart