USD/MXN Price Analysis: More gains likely, first target 20.45

• USD/MXN is breaking a range to the upside, looking to more gains.
• Next target seen around 20.45 and then 20.70.
• Decline back below 20.20 should weaken the US dollar.

The USD/MXN is breaking above a range that held since mid-August. As long as the pair remains above 20.25 the outlook is bullish. The next target may be seen at 20.45 and above the next barrier emerges around 20.70.  As of writing, it trades at fresh two-month highs at 20.37.

Basically, most technical indicators are pointing to the upside, offering bullish signs. RSI is up, not yet in overbought territory.

The bullish tone is strong. During the session, the pair pulled back many times to the 20.20/25 zone but held above. A consolidation below would alleviate the pressure and could even suggest a potential short-term top.

USD/MXN daily chart