USD/MXN Price Analysis: First test above 21.50, bullish pressure persists

• Mexican peso among worst performers on Monday trims losses after stocks hit new highs in Wall Street.
• The bullish trend in USD/MXN remains firm; above 21.50 the odds for 22.00 will rise.

The USD/MXN is rising for the fourth consecutive day in a row and reach 21.64, the highest level since November. It then pulled back, and it is hovering around 21.40. The retreat under 21.50 alleviated the bullish pressure, although the trend remains firm.

The Mexican peso is among the worst performers on Monday. It recovered ground as Wall Street rises. Still, emerging market assets do not reflect the optimism seen in US stocks. These contrarian signs point to caution among investors.

Technically the trend in USD/MXN is firm, and a consolidation above 21.50 would point to the next resistance at 21.75 that protects the 21.90/22.00 barrier. On the downtrend, the immediate support is seen around 21.15.

Momentum and the RSI are at extreme overbought levels in the daily chart, so some consolidation seems likely ahead. The signs of a correction are not there yet.

USD/MXN technical level