USD/MXN Technical Analysis: Bullish outlook, more gains seen above 20.50/60

• The Mexican peso dropped modestly against the US dollar and remains near a key technical level that could open the doors to further losses. 
• The USD/MXN continues to test the 20.50/55 area that capped the upside last week. A consolidation on top would signal further gain, with an immediate target at 20.65 and above 20.90. 
• Current technical outlook favors the upside but if it fails at 20.50, a corrective slide seems likely. A dynamic supports stands at 20.15 (uptrend line in 4 hours chart) and below the key support is seen at 20.00/05 (Nov 9, 16 low and also 20-day moving average). 

USD/MXN Daily Chart 

Spot: 20.40
Daily high: 20.53
Daily low: 20.31

Support Levels

S1: 20.30
S2: 20.20
S3: 20.05

Resistance Levels

R1: 20.60
R2: 20.80
R3: 21.00