USD/MXN Price Analysis: Bouncing from key support, more gains above 20.00

• Mexican peso consolidates recent gains versus US dollar, unable to break under 19.80.
•  USD/MXN likely to extend gains with a break above 20.00.

The USD/MXN is trading flat in Tuesday, after bouncing again from near the 19.80 area. The mentioned level has become a key support zone; a daily close below would clear the way to more losses, targeting 19.70. If the decline continues, the focus would turn to the 19.50 zone.

Around 19.98, the 20 and 55-day moving averages are seen. A break higher and if confirmed with a close above 20.00, would alleviate the bearish pressure, suggesting more gains ahead. The next relevant obstacle is located around 20.25.

In the short-term, technical indicators offer mixed signs and the key SMA are flat. The failure to break 19.80 should favor a correction to the upside. A weekly close above 20.15 should warn about a potential rally to 20.60, while under 19.70, to 19.45.

USD/MXN daily chart