• Mexican peso holds onto recent gains versus the US dollar.
• USD/MXN consolidating with a bearish bias, more downside under 21.30.
• The primary trend remains bullish, next strong support at 20.90.

The USD/MXN is falling again on Monday but it remains above the 21.00 zone, but is under the 21.30 relevant technical support. It is hovering around 21.20, so another test at 21.15 should not be ruled out for the coming sessions.

A slide under 21.15 would expose two strong support levels: 21.05 and 20.90 that are likely to hold, favoring a rebound to 21.30. A close under 20.90 would be a positive technical development for the Mexican peso that could drop further to test the uptrend line at 20.50.

On the upside, a firm recovery above 21.45 would alleviate the negative pressure. No signs of a resumption of the primary uptrend are seen at the moment. The USD/MXN continues to from a consolidation range likely between 21.15 and 21.65. A break above 21.70, would expose the 22.00 zone.

USD/MXN daily chart