USD/MXN Price Analysis: Pares gains below 17.1350, Fed decision eyed
|- USD/MXN reverses the previous day’s gains ahead of the Fed policy decision.
- MACD shows a pattern of divergence below the signal line; indicating a momentum shift.
- The immediate support appears around the weekly low, followed by the 17.0000 psychological level.
USD/MXN retraces the previous day’s gains, trading lower around 17.1040 during the European session on Tuesday. Investors caution ahead of the US Federal Reserve’s (Fed) policy decision contributes the support for undermining the pair.
The immediate support for the USD/MXN pair appears around the weekly low at 17.0308, followed by the 17.0000 psychological level.
If bearish sentiment exerts pressure, the pair could potentially approach the next support level near the 16.9000 psychological level.
The USD/MXN pair could face a challenge around the seven-day Exponential Moving Average (EMA) at 17.1625, following the 23.6% Fibonacci retracement at 17.1904 level.
A firm break above the latter could open the doors for the pair to explore the region around the 17.2000 psychological level.
The Moving Average Convergence Divergence (MACD) line remains above the centerline, but it exhibits a pattern of divergence beneath the signal line. This pattern indicates that the recent uptrend in the USD/MXN pair is losing strength.
However, the 14-day Relative Strength Index (RSI) indicates bearish momentum in the short term as it lies below the 50 level.
USD/MXN: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.