USD/MXN Price Analysis: Bullish while above 20.55

• USD/MXN found support above 20.50 and also at the 20-day SMA.
• Bias skewed to the upside, limited at the moment by 20.70.
• Mexican peso to strengthen with a break under 20.50.

The USD/MXN is rising on Tuesday as it hovers around 20.60. During the last sessions, it has been consolidating after being unable to hold above 20.70.

The bias in the short-term term is biased to the upside but gains seem limited while under 20.70. A close above could open the doors to 20.85/90, the next resistance and last protection to 21.00.

The bullish tone will be negated with a decline under the 20.50/55  support area that contains a horizontal line and also the 20-day simple moving average. A break lower would target 20.40. The next support is seen at 20.35 and the 200-day moving average at 20.30.

USD/MXN daily chart