USD/MXN Price Analysis: Rises to test 22.75, more gains likely above

• Ahead of Banxico, after the earthquake and amid risk aversion, USD/MXN still remains sideways around 22.50.
• Bias favors bullish breakout, a barrier around 22.80/22.90 is being tested.

The USD/MXN is trading near the top of a range that has been in place since last week. Price has been moving around 22.50, unable to move away from that level, without a clear bias.

On Thursday, boosted by risk aversion is about to test the 22.75/80 resistance. A break higher would target the June high at 22.94. A consolidation above 22.80 would clear the way to 23.20 (horizontal level / 55-day moving average).

If USD/MXN remains below 22.80, the range will stay in place. The critical support is seen at the band 22.15/25 that includes the 20-day moving average.

USD/MXN daily chart