USD/MXN Price Analysis: Decline gains momentum below 21.50

• Mexican peso continues to outperform, heads for the highest close since September 21.
• USD/MXN drops for the fourth consecutive day falls under 21.50.

The USD/MXN is again falling almost 1%, accumulating a decline of 4.5% from the level it had a week ago as the Mexican peso continues to outperform. On Monday the slide is also being driven by a weaker US Dollar and high equity prices.

Price is now below a downtrend line that was broken weeks ago that stands at 21.48. If USD/MXN holds below, more losses seem likely. The next target might be seen at 21.15/20 and below at 21.00. The next strong barrier could be seen around September lows near 20.85.

On the upside, a recovery in USD/MXN above 21.50 would alleviate the bearish pressure, and above 21.65 (20-day moving average) the greenback could strengthen for a test of 21.95/22.00.

USD/MXN daily chart