USD/MXN Price Analysis: Bears occupy the driver’s seat below 18.10 key resistance

USD/MXN takes offers to reverse the week-start corrective bounce off multi-month low.
Bearish MACD signals, sustained trading below 50-DMA keep sellers hopeful.
Convergence of previous support line from November 2022, one-month-old descending trend line appears crucial hurdle towards the north.

Anil Panchal FXStreet

USD/MXN bears are back to the table, following a one-day absence, as the Mexican Peso (MXN) pair drops to 17.99, down 0.10% intraday during early Tuesday in Europe.

In doing so, the currency pair reverses the previous day’s corrective bounce from the lowest levels since April 2018.

It’s worth noting that the USD/MXN pair’s latest losses take clues from the bearish MACD signals, as well as the sustained trading below the 50-DMA. Adding strength to the bearish bias could be the quote’s failure to cross the $1,810 resistance confluence during the previous day’s rebound.

That said, a downward-sloping trend line from early February and a 14-week-old descending trend line, previous support, together constitute the 18.10 resistance confluence.

Should the quote rises past the 18.10 hurdle, the pair’s run-up towards a five-week-old horizontal resistance near 18.50 can’t be ruled out. However, the USD/MXN bears remain hopeful unless the quote trades below the 50-DMA level of 18.75.

On the contrary, the latest bottom of around 17.95 and April 2018 low of 17.90 lure the USD/MXN pair sellers of late.

Following that, September 2017 low and the year 2017 trough, close to 17.60 and 17.45 in that order, may flash on the bear’s radar.

USD/MXN: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	17.9916
Today Daily Change	-0.0157
Today Daily Change %	-0.09%
Today daily open	18.0073

Trends
Daily SMA20	18.4356
Daily SMA50	18.7851
Daily SMA100	19.1949
Daily SMA200	19.6738

Levels
Previous Daily High	18.0394
Previous Daily Low	17.9495
Previous Weekly High	18.4235
Previous Weekly Low	17.9541
Previous Monthly High	19.2901
Previous Monthly Low	18.2954
Daily Fibonacci 38.2%	18.0051
Daily Fibonacci 61.8%	17.9839
Daily Pivot Point S1	17.9581
Daily Pivot Point S2	17.9088
Daily Pivot Point S3	17.8682
Daily Pivot Point R1	18.048
Daily Pivot Point R2	18.0887
Daily Pivot Point R3	18.1379

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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