USD/MXN Price Analysis: Downside bias prevails, testing the 50-day SMA

• Mexican peso supported by risk appetite and by technicals.
• USD/MXN attempts to recover back above 22.00, momentum still negative.

The USD/MXN is falling for the second day in a row. It bottomed at 21.79, the lowest level in a week and then rebounded. It was trading slightly below the 22.00 level and around the 50-day moving average. A daily close clearly under 21.90 would suggest more losses ahead.

On the downside, under 21.90, the next strong support is seen at 21.50 that should limit losses and favor a rebound if reached over the next sessions.

The US dollar needs to hold above 22.00 to alleviate the negative bias. If it climbs above 22.20 the dollar would likely strengthen.  To open the doors to more gains, USD/MXN needs to consolidate above 22.50.

USD/MXN daily chart