• USD/MXN peaks at 20.91, the highest level since March.
• Mexican peso recovers from some losses, amid a holiday in Mexico.
• US dollar mixed ahead of the FOMC meeting.

The USD/MXN is falling for the first time in more than a week on Tuesday after the pair found resistance at 20.90. A holiday in Mexico and some profit-taking weighed on the pair that retreated to the 20.70 area.

The bias in USD/MXN still points to the upside. In order to clear the way to more gains, the dollar needs to consolidate above 20.90. The next area to watch is 21.00 with the next resistance at 21.05 followed by 21.45.

The correction of USD/MXN could extend to 20.60/65 without negating the current bullish bias. Below around 20.45 is the next critical area, horizontal support and the 20-day moving average. A slide below would alleviate the pressure, leaving the Mexican peso stronger.

USD/MXN daily chart