USD/MXN Price Analysis: Mexican peso at monthly highs, tests new critical zone at 20.45/50

• Mexican peso extends monthly gains versus US dollar.
• USD/MXN breaks uptrend line, tests 100-day moving average.

The USD/MXN is falling again on Thursday and is testing the 20.45/50 support area. It reached the lowest level since mid-November. Now the 20.58 level has become the immediate resistance.

The area around 20.50 also contains the 100-day simple moving average. A daily close below would be the first one since September.

Technical indicators point to the downside. The daily RSI is not yet at oversold levels, suggesting the decline could continue in the short term, particularly if the 20.45 support is broken. The next critical support is located at 20.30.

A recovery above 20.60 should alleviate the bearish pressure. While the next resistance stands at 20.70. A level that should favor a retreat if reached in the short term. The 20.90 area is critical: if the dollar rises above it could negate the current negative bias, favoring a consolidation. Only above 21.30 the greenback would start looking stronger.

USD/MXN daily chart