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  • USD/MXN holds under 20.00, tests the 19.70 area.
  • Outlook points to further gains for the MXN; below 19.70, attention turns to 19.50.

The USD/MXN is rising modestly on Tuesday after it bottomed at 19.71, the lowest levels since mid-January. It tested the 19.70/75 area and rebounded. It is back above 19.80, but the bias still points to the downside.

The outlook continues to favor more losses. The target at 19.70/75 has been reached. A close under 19.70 would leave the pair vulnerable to more losses, with a potential target on the 19.50/55 area.

Technical indicators favor the downside, but the momentum eased. The dollar needs to rise back above 20.00 to alleviate the bearish pressure. A daily close above 20.20/25 would suggest that a temporal bottom is in place.

USD/MXN daily chart

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