USD/MXN Price Analysis: Resistance at 20.65/70 holds the upside

• Mexican peso recovers on Friday, still among worst weekly performers.
• USD/MXN moving in the new range, upside bias.

The USD/MXN is retreating on Friday, pulling back after reaching earlier at 20.72 the highest level in a week. It is trading under 20.50, with a strong bearish intraday momentum. The daily chart nevertheless stills shows a bullish bias.

If the slide continues, USD/MXN will likely face some support around 20.45. A break lower would set the attention to the 20.30 area that should limit the decline and favor a rebound. The next critical support stands around 20.13/18 that contains the 100 and 200 moving average.

On the upside, the 20.65/70 zone capped the rally so far. A daily close above 20.65 should expose the next key area of 20.85/90, the last defense to an attack of 21.00.

The daily chart shows a modest bullish bias that will likely remain in place while above 20.20. A weekly close below 20.10 (20-WMA) should strengthen the Mexican peso.

USD/MXN daily chart