USD/MXN Price Analysis: Mexican peso testing levels under 20.00 (again)

• USD/MXN erases gains as the US dollar weakens across the board.
• The trend keeps favoring the Mexican peso that is testing a psychological level.

The USD/MXN erased losses and is trading back under 20.00. The recovery of the US dollar lost momentum under 20.10 and turned to the downside. The Mexican peso is the best performer among emerging market currencies over the last week but on Wednesday is lagging.

The main trend in USD/MXN keeps pointing to the downside, and a consolidation below 20.00 should lead to more losses. The next key supports are seen at 19.75/80 and below at 19.55.

On the upside, resistance level might be seen around 20.30 and above at 20.70. A break above 21.50 (downtrend line) would negate the current bearish bias, suggesting a stronger recovery or a consolidation at higher levels.

USD/MXN daily chart