USD/MXN Price Analysis: Bullish, looking at 20.85/90

• USD/MXN holds bullish bias, approaching resistance zone 20.85/90.
• Consolidation above 20.70 to keep the momentum favoring the dollar.
• Slide under 20.47 to alleviate the pressure.

The USD/MXN is on its way to the highest daily close since late January. It is rising for the second day in a row, as it continues to rally after bottoming last week at 20.15. The cautions tone across financial markets is keeping emerging market currencies under some negative pressure.

The chart is biased to the upside in USD/MXN. Price remains so for above the 20.70 key level. If it consolidates, a test of the next critical resistance of 20.85/90 seems likely. The mentioned area is the last defence to 21.00. Above the next resistance stands at 21.25.

Technical indicators on the daily chart also support the upside. Momentum and the RSI are moving north. The RSI is near overbought levels but showing no signs of a correction.

A retreat back under 20.70 should alleviate the bullish tone, favoring a consolidation between 20.70 and 20.35 (intermediate level at 20.45/50). A decline below 20.35 could expose the next support at 20.25 and the January low of 20.15.

USD/MXN daily chart