USD/MXN Price Analysis: Still above key moving averages, a test of 20.45 on the cards

• The bias in the USD/MXN still favors the upside, despite the recent correction.
• Dollar holds above key moving averages, looking for another run to 20.45.

The USD/MXN is trading modestly higher on Wednesday, after retreating for two days. Price held above the 20.00 area, keeping a bullish bias in the short-term. Another test of the 20.45/50 area seems probable (downtrend line/ 100-day simple moving average).

The positive bias has a critical support at 19.95/20.00, the convergence of the 20 and 55-day moving averages. A decline below would point to the resumption of the long-term bearish trend, now being challenged.

The RSI continues to back away from 70, starting to leave room for another run higher. Above 20.30, the greenback should gain momentum to extend the upside. Resistance levels above 20.45 emerge at 20.60 and 20.80.

USD/MXN daily chart