• USD/MXN remains above 19.90 but faces pressure
• More losses seem likely while under 20.20.

The USD/MXN is modestly higher on Friday, but it remains under 20.00. The pair found support above 19.80 and rebounded. The move higher so far shows lack of strength keeping the bias in favor of the Mexican peso.

A consolidation under 19.90 should clear the way for a test of the 19.80 area. A break lower would expose 19.70 an even stronger support area that protects 19.50.

A recovery above 20.00 could point to more gains and a test of 2017, the convergence of the 20 and 100-day Simple Moving Average. A daily close above 20.25 should trigger more gains, shifting the short-term outlook from bearish to neutral/bullish.

On a wider perspective, USD/MXN continues to trade in the 19.50/21.50 range as is has been the case since November 2020. A weekly close above 21.00 could suggest a test of 21.50.

USD/MXN Daily chart