USD/MXN Price Analysis: Another failure at 22.75 opens door to more losses

• Mexican peso consolidates recovery, removes bearish pressure.
• USD/MXN could post the lowest close in a month, near relevant support.

The USD/MXN pair bottomed on Wednesday at 22.25 and rebounded modestly. It is hovering around 22.30, holding near a short-term uptrend line.

Again the pair failed near 22.75 and pulled back. This time it managed to remain under 22.50, a bearish short-term sign. The next support stands at 22.20: a break lower would clear the way for a slide toward 22.00. The mentioned area should initially hold, favoring a rebound back to 22.30. If broken, 21.50 would be on the radar.

On the upside, the critical area is around 22.70/80, where several horizontal resistance levels confluence with the 55-day moving average. A close above, would point to more gains for USD/MXN with an immediate target at 22.90 and then 23.20.

USD/MXN daily chart