USD/MXN Price Analysis: Mexican peso hits three-months highs and tests 21.50 again

• US dollar drops across the board, emerging market currencies among top performers.
• USD/MXN reverses from weekly highs, falling to lowest intraday level since June.

The USD/MXN found against resistance below 22.00 and turned to the downside amid a board-based slide of the US dollar. The pair fell from the highest in weeks hitting three-month lows. It was unable to break under 21.50.

On the upside, the critical level to watch is 22.00, a convergence of a round number, a downtrend line and key moving averages. A daily close above would likely point to further gains, with an initial target at 22.30.

At the moment, USD/MXN is testing again the 21.45/50 support area. Below that level the bearish pressure will likely rise considerable, leaving the doors open for a slide to 21.00, with an intermediate target at 21.30.

USD/MXN daily chart