USD/MXN Price Analysis: Still trapped near 22.50, where could it go?

• Mexican peso recovers versus US dollar in July, but modestly.
• USD/MXN is in a symmetric triangle in the short-term.

The USD/MXN is falling on Tuesday after as it continues to be unable to move significantly away from 22.50. Recent price action appears to be following a symmetric triangle but support around 22.35 and resistance at 22.75.

On the upside, the critical level to watch is the area between 22.75 and 22.90, horizontal resistance, and also the 55-day moving average. A close above would clear the way to more gains, targeting 23.20.

On the flip side, a slide below 22.35 would likely be followed by a test of the support at 22.20 that protects 22.00/05. A consolidation under 22.00 would expose June lows, but initially, the area should hold favoring a rebound to 22.20 and potentially 22.35.

USD/MXN 4-hour chart