USD/MXN Price Analysis: Looking at 23.20 while above 22.50
- USD/MXN rose above the 22.50 area, opening to doors to more gains.
- So far, it peaked at 22.90, next obstacles emerge at 23.05 and 23.25.
The USD/MXN broke on Monday a critical technical zone at 22.50. That level contained the 20 and 50-day moving average, a downtrend line and a horizontal level. While above, the US dollar looks ready to extend gains.
On Tuesday, the pair peaked 22.90, the highest level in a month before pulling back amid a retreat of the greenback. The immediate resistance is the 22.90 zone and a break higher would likely lead to more gains above 23.00, targeting June highs at 23.25.
A failure to break 22.90 could suggest some consolidations ahead between 22.90 and 22.25, with an intermediate support at 22.50.