USD/MXN Price Analysis: Mexican peso in a consolidation range, under 22.00

• Mexican peso fails at key support and loses strength.
• USD/MXN rebounds but still holds a bearish bias.

The USD/MXN pair printed a fresh two month lows on Tuesday at 21.45 and then rebounded. Again the area around 21.45/50 capped the downside and triggered a rebound toward 22.00. The greenback hit a daily high at 21.89 and then pulled back modestly.

In the very short-term the bias favors a further approximation to 22.00 (horizontal resistance, round number and the 100-EMA in four hours chart). A firm break higher would clear the way to more gains targeting 22.20 and also could signal a potential base.

If the consolidation range in USD/MXN prevails, approximation to 22.00 could be seen as an opportunity to sell with a first target slightly below 21.70 and the second at 21.50. Under 21.45, the next support area is seen at 21.30. The main trend remains bearish. 

USD/MXN 4-hour chart