- USD/MXN is breaking out of a range to the upside, looking for more gains.
- The next target is around 20.45 and then 20.70.
- A return below 20.20 should weaken the US dollar.
The USD/MXN it is breaking above a range that has held since mid-August. As long as the pair remains above 20.25 the outlook is bullish. The next target can be seen at 20.45 and above the next barrier comes around 20.70. At the time of this writing, it is trading at two-month highs at 20.37.
Basically, most technical indicators point to the upside, offering bullish signals. The RSI is on the upside, but it is not yet in overbought territory.
The bullish tone is strong. During the session, the pair pulled back several times to the 20.20/25 zone, but remained above it. A consolidation below would ease the pressure and could even suggest a potential short-term top.
USD/MXN daily chart
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Source: Fx Street
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