USD/MXN Price Analysis: Mexican peso challenges key support at 21.50

• Mexican peso remains bullish against the US dollar, needs to break 21.50.
• USD/MXN rises for the first time in five days, still under pressure.

The USD/MXN continues to move with a bearish bias and is testing the critical support area at 21.45/50. A break lower is needed in order to clear the way to further losses. The next support might be seen at 21.30, followed by 21.00.

The bearish bias in USD/MXN will likely remain in place as long as it holds below 22.00. A close above 22.20 would negate the current tendency, suggesting more gains ahead, targeting 22.30 initially and then 22.55.

On a wider perspective, technical indicators offer mixed signals, so the key in USD/MXN for the next sessions will be what happens with 21.50. The next target below is 20.95, the 55-week moving average.

USD/MXN daily chart