USD/MXN Price Analysis: Hovers below 17.7200 psychological level with a positive bias
|- USD/MXN trades higher due to the Fed's hawkish stance on interest rate trajectory.
- Momentum indicators suggest a potential bullish sentiment in the price dynamics.
- The major level at 17.7200 emerges as the immediate barrier.
USD/MXN continues the gains on the second successive day, trading higher around 17.7150 aligned with the 17.7200 psychological level during the Asian session on Tuesday.
A break above the latter could open the doors for the pair to explore the region around 17.8000 major level, following September’s high at 17.8174.
This upward movement is attributed to the US Dollar (USD) benefiting from the market caution surrounding the US Federal Reserve’s (Fed) interest rates trajectory.
On the downside, the 23.6% Fibonacci retracement at 17.6243 appears to be the key support, following the 38.2% Fibonacci retracement at 17.5049 level.
A firm break below the level could push the USD/MXN pair to navigate the 14-day Exponential Moving Average (EMA) at 17.4347 lined up with the 17.4000 major level.
The current upward momentum in the pair suggests a bullish bias, given that the 14-day Relative Strength Index (RSI) remains above the 50 levels.
The Moving Average Convergence Divergence (MACD) indicator is providing a strong signal for the Dollar bulls. The MACD line lies above the centerline and the signal line. This configuration suggests that there is potentially strong momentum in the USD/MXN's price movement.
USD/MXN: Daily Chart
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