USD/MXN Price Analysis: Mexican peso holds onto recent gains, still near 19.75

• Mexican peso remains strong holding to last week’s gains across the board.
• USD/MXN sideways on Monday, after falling for five consecutive days.

The USD/MXN bottomed on Thursday at 19.69, the lowest level in two weeks. The mentioned level is slightly above the June low of 19.59. The bias point to the downside, but the pair needs to hold firmly under 19.75 to keep the negative momentum intact.

On the flip side at 19.60/65 is a relevant support; and below comes the 19.50 area. The current price action zone is well known for the USD/MXN so a consolidation here could last. A break under 19.50 should lead to more losses.

On the upside, the USD/MXN needs to rise above 20.05 to alleviate the negative bias. Above the next strong resistance stands at 20.30.

On the weekly chart, a close under 19.70 would point to more losses over the medium-term, as the price would consolidate under a key horizontal support and also below the 20-week moving average.

USD/MXN weekly chart