• Mexican peso holds a negative bias against the US dollar.
• USD/MXN moving in a new higher, testing upper limit.
• Key support is seen at 20.30/35, horizontal line and trendline.

The USD/MXN is falling marginally on Wednesday after rising during two consecutive days and after posting on Tuesday, the second-highest close of the current month. The stronger US dollar across the board continues to be the key driver in the cross.

Key moving averages pointing north, technical indicators mixed and far from extreme readings, are tilted to the upside in USD/MXN. Also supporting the bullish outlook is price holding above the 20, 55 and 100 simple moving averages and above a short-term uptrend line that today stands at 20.30.

The positive outlook would be negated with a slide under 20.30 that would target initially the 20.20 area and below the October low at 20.10.

On the upside, the critical resistance is seen at around 20.85/90. A consolidation above would clear the way for a test of 21.00; above the next strong resistance is located at 21.15.

USD/MXN daily chart