• USD/MXN is falling for the fifth consecutive day.
• Losses seem limited while above 20.30; dollar to strengthen above 20.55.

The USD/MXN is falling for the fifth consecutive day. The decline found support again around the 20.30 area that also capped the downside earlier in July. The mentioned zone is the key support and a consolidation below would clear the way for the 55-day Simple Moving Average at 20.15. The next support stands at 20.00.

The 20.30 area also contains an uptrend line from the June low, reinforcing the importance of this crucial area.

Technical indicators offer no clear signs. Momentum and the RSI are flatting. Price remains below the 20-day Simple Moving Average (20.54) that is still heading north. The bearish bias still prevails in the short term but shows a lack of strength.

A recovery above 20.55 should improve the outlook for the greenback. The next key resistance is seen at 20.70, that last defense to a new test of 20.90. A daily close above the last one would expose 21.00.

USD/MXN Daily chart