Technical outlook
Bearish scenario
Since 24.03.2020 the pair is developing a bearish trend. Currently, the price is below 9 days EMA in conjunction with the pin bar that formed yesterday (15.10.2020). From technical point of view the first target for on the downside should be 20.8755 and if this level falls the long-term resistance around 20.40.
Bullish scenario
The resistance level of 21.50 should be monitored very closely as if the price start trade above this level for couple of days then the target of 21.85 should be achieved quite fast.
Fundamentals
The cyclicality is now in favor of MXN as a 10 years cycle in the USDMXN could be at its end.
Also, the elections in the USA could be the fuel behind the further drop in the USD as these kinds of events always lead to uncertainties.
Traders should keep in mind also that the environment of low interest rates in USA is by default good for the emerging markets as most if not all of their international debt is denominated in US dollars.