USD/MXN Price Analysis: Another flat week above 22.00, how long could the consolidation last?

• Mexican peso tested levels under 22.20 but it was rejected.
• Key technical levels to watch in USD/MXN: 22.20 and 22.60.

The USD/MXN is about to end the week modestly lower, but overall it continues to trade sideways. For the fourth time in a row it will post a weekly close near 22.40.

The daily chart shows the cross capped between to key areas. On the upside, 22.60 is becoming more important. Around that level a horizontal resistance is seen but also a downtrend line and the 20 and 55-day moving averages. A consolidation clearly above would likely clear the way to more gains, targeting first 22.90 and then 23.20.

During the week, USD/MXN traded below 22.20 but the Mexican peso failed to consolidate those levels. It rose back above. The mentioned are continues to be a critical support. A close below would expose 22.00, leaving the cross vulnerable to more losses.

USD/MXN daily chart