USD/MXN Price Analysis: Limited while below 20.25

• USD/MXN continues to move sideways around the 20-day SMA.
• Bearish risks prevail while below 20.10.
• Break above 20.25 to open the doors to more gains.

The USD/MXN is rising on Tuesday bouncing from the 19.90 area, currently hovering around 20.00 as financial markets appear on a wait-and-see mode until the FOMC decision. Fed’s decision and Powell’s press conference could trigger volatility, affecting the pair.

Risks in USD/MXN are tilted to the downside in the short term, while it remains below 20.10. The immediate support is the 19.90 area. A break lower would expose the critical support seen at 19.80. A daily close below would initially target 19.72. Further losses under 19.70 should point to a decline toward 19.50.

On the upside, the pair is facing immediate resistance at 20.10 in the very short term. A break above could lead to a test of a key area seen between 20.20 and 20.25 that contains a horizontal level, a downtrend line and the 200-day Simple Moving Average.

A firm break above 20.25 should favor an acceleration targeting 20.45 and would change the risks to the upside for the next weeks.

USD/MXN daily chart