USD/MXN Price Analysis: Downside limited while above 21.10

• Mexican peso losses momentum against US dollar, holds positive bias.
• USD/MXN rebounds from key support area at 21.15.

The USD/MXN is rising on Tuesday for the second day in a row, at a modest pace. It continues to rebound from the 21.15 support line. A consolidation under 21.10 is needed to clear the way to more losses, for a test of the September low at 20.84.

The current bias favors an extension of the rebound in USD/MXN that could gain momentum if it breaks above 21.50. The next target would be the 20-day moving average at 21.65. The next resistance is seen at 21.95.

While the bias points to the downside, above 21.10 the odds of a rebound will remain high. A break of 22.35 would negate the positive outlook for the Mexican peso.

USD/MXN daily chart