USD/MXN Price Analysis: Trends remains in favor of the Mexican peso

• Mexican peso drops after reaching multi-month highs versus dollar.
• USD/MXN bearish bias to persist while below 20.70/75

The USD/MXN reached on Wednesday a new ten-month low at 19.55, and on Thursday it is rising, trading back above 19.70, alleviating the bearish pressure.

The main trend continues to favor the downside in USD/MXN, and the next target and strong support is located at 19.45/50. A break lower would clear the way to 19.30.

On the upside, the immediate resistance is seen at 19.92 followed by the 20.20 zone. A firm break above 20.20 would suggest more gains ahead for the dollar.

The negative perspective will remain in place as long as price holds below an eight-month downtrend line and the 100-day moving average, both at the 20.70/75 area.

USD/MXN daily chart