USD/MXN Price Analysis: Downside bias still in place, more losses seen under 21.30

• Bias continues to point to the downside in USD/MXN despite Tuesday’s rebound.
• Key support seen at 21.30, break lower to clear the way for a test of 21.00.

The USD/MXN climbed on Tuesday to the 21.75 area, ending a four-day negative streak. On Wednesday it is falling, erasing most of the recent gains. It is hovering around 21.50 ahead of the FOMC minutes after finding support at 21.35.

The bearish bias remains in place. The immediate support is seen at 21.40. A consolidation below 21.30 would open the doors to more losses, exposing the 21.00 area that protects the September low at 20.83.

On the upside, there is a band of resistance (horizontal levels and key moving averages) between 21.75 and 22.00. A daily close above would alleviate the bearish pressure and would suggest a test of the downtrend line from June at 22.55.

USD/MXN daily chart