USD/MXN Price Analysis: Upside limited while below 20.05

• Mexican peso continues to trade sideways, bearish risk rises.
• USD/MXN testing the 20.05 area, supported by uptrend line.

The USD/MXN is rising again on Tuesday on the back of a stronger US dollar across the board. Gains are likely to remain limited as longs price continues to be unable to hold firm above 20.05. The area around 20.05 contains a horizontal resistance and also the 20-day moving average.

A break above 20.05 should point to more gains, with the target at 20.20, the 100-day moving average. The next resistance is located at 20.30.

The bias in the short-term is neutral. Technical indicators are biased modestly to the upside. A break under the 19.80 area (uptrend line) would change the bias to bearish, exposing the June low at 19.59.

USD/MXN daily chart