Bearish risk rises as the Mexican peso trades sideways.
USD/MXN is currently testing the 20.05 area, which is supported by an uptrend line.
On Tuesday, the USD/MXN is gaining again, owing to a stronger US dollar across the board. As long as the longs price cannot hold over 20.05., gains are likely to be limited. A horizontal barrier as well as the 20-day moving average can be found at 20.05.
More increases should be expected if the price breaks over 20.05, with the objective being 20.20, the 100-day moving average. The next level of resistance is at 20.30.
In the short run, the bias is neutral. The technical indications are slightly skewed to the upward. If the price breaks below the 19.80 region (uptrend line), the bias shifts to bearish, exposing the June low of 19.59./n
