• USD/MXN jumps back above 20.00 as dollar strengthens versus emerging market currencies.
• Pair hits the 100-day SMA and retreats.
• Daily close above 20.25 to point to more gains.

The USD/MXN is rising for the second day in a row on Tuesday, boosted by a stronger US dollar and extending a rebound after approaching to 19.90. The pair peaked at 20.17, after the release of US economic data, matching the 100-day Simple Moving Average (SMA).

The immediate resistance stands at 20.17; above the USD/MXN could rise to test 20.25. A break higher should change the short-term bias to neutral/bullish. A daily close above 20.25 would be a positive development of the US dollar, targeting the 20.45 zone.

Since mid-August USD/MXN is moving sideways in a range between 19.80 and 20.25. An interim support area is seen at 19.90. A firm break under 19.80 would weaken the dollar further, exposing 19.72.

USD/MXN daily chart