USD/MXN Price Analysis: Bearish bias intact, Mexican peso needs to hold under 22.50

• Mexican peso holds positive bias versus the US dollar, could rise further.
• USD/MXN is testing the 21.90 support area, more losses seen below. 

The USD/MXN pair reached on Wednesday at 21.84, the lowest level since mid-June and then it rose above 22.00. Despite gaining ground, the bearish bias remains intact so far.

A consolidation under 21.90 is needed to clear the way to more losses in USD/MXN, targeting the 21.50 area. The next strong support is around 21.45 that should limit the decline, favouring a rebound.

On the upside, the immediate resistance is located at 22.20/25. Above attention would turn to the key 22.45/22.55 area. A daily close above 22.55 would negate the bearish bias and would suggest more gains ahead. In the mentioned area the 20 and 55-day moving averages are seen and also a downtrend line. If the price holds above, a test of 22.90 seems likely.

USD/MXN daily chart

USD/MXN