USD/MXN Price Analysis: Testing levels under relevant 20.30 area

• USD/MXN keeps falling, now testing levels below the key support at 20.30.
• Mexican peso remains strong, Banxico seen raising rates on Thursday.

The USD/MXN is falling for the third consecutive day on Tuesday and it dropped below 20.30. If the Mexican peso holds firm under the mentioned area, the negative tone will remain intact, with doors open to more losses, targeting 20.15.

The next critical support stands around 20.13/18 that contains the 100 and 200 moving average. A slide below would expose 20.00.

The Mexican peso is looking strong ahead of the Banxico meeting on Thursday. The central bank is seen raising the key rate from 4.75% to 5%, particularly after CPI data showed an increase above 6% in the annual rate.

On the upside, USD/MXN could face resistance at 20.45. If the dollar manages to rise and hold above, the short-term outlook should favor the upside. The next resistance levels are located at 20.65 and 20.80.

USD/MXN daily chart