USD/MXN Price Analysis: Unable to recover, remains near 20.30

• Mexican peso remains strong versus US dollar, holds onto recent gains.
• USD/MXN keeps testing the 20.30/35 support area.
• Resistance emerges at 20.60, horizontal level and the 20-SMA.

The USD/MXN continues to be unable to recover ground. Recent runs higher were followed by a retracement back to the 20.35 zone. A stronger Mexican peso continues to push the price toward the 20.30/35 support. A break lower would clear the way to more losses, targeting 20.15. Below attention would turn to 20.00.

On the upside, the immediate resistance emerges at 20.50 and then comes a more significant barrier at 20.60. A daily close above would expose the next one at 20.85. A daily close above 20.90 would be a positive sign for the dollar.

Technical indicators are slightly biased to the downside, but most of them are now flat. The 55-day simple moving average is turning to the upside, and the 200-SMA awaits flat at 20.28.

USD/MXN daily chart