USD/MXN Price Analysis: Mexican peso gains after Banxico, still faces negative outlook

• The Mexican peso rose across the board after Banxico’s meeting.
• USD/MXN drops on Friday for the second day in a row remains above short-term trendline.

The USD/MXN is falling on Friday, is about to end the week slightly above the level it had seven days ago. Price bottomed on 20.53, and it continues to press against the 20.50/55 area that is a critical support.

A consolidation under 20.50 would strengthen the Mexican peso, opening the doors for a slide to the next barrier at 20.25/30. As long as it remains above 20.50, the odds will favor more gains.

On the upside, USD/MXN seems limited while below 20.80. A consolidation above 20.80 should clear the way for a test of 21.00. The next resistance levels are located at 21.10 and 21.30, which protects the medium-term barrier of 21.50.

The daily chart shows mixed signs. Price is back below the 20-day SMA, and the Momentum points to the downside. The RSI is flat, and longer-term moving averages have a positive slope supporting a bullish outlook.

USD/MXN daily chart