USD/MXN Price Analysis: Mexican peso remains strong, could test 19.50

• USD/MXN falls for the third consecutive day, still above the 19.75 critical support.
• Outlook points to further gains for the MXN, under 19.70 likely to drop toward 19.50.

The USD/MXN remains under pressure amid a stronger Mexican peso following mid-term elections in Mexico. The pair drops for the third day in a row and continues to pressure the 19.70/75 area.

A daily close clearly below 19.75 would favor further losses targeting potentially the area around 19.50 with an intermediate support seen at 19.65. Technical indicators also favor the downside and also short-term moving averages.

A recovery above 19.85 would alleviate the bearish momentum. Still, a recovery above 20.00 is needed to negate the current negative tone for USD/MXN. Further to the upside is 20.25, a key resistance: a daily close above would favor more gains.

USD/MXN daily chart