USD/MXN Price Analysis: Bears run out of steam within a 10-pip zone around 18.00

USD/MXN retreats from intraday high, snaps two-day losing streak.
Three-week-old descending trend line restricts immediate upside ahead of the key SMAs.
RSI pokes short-term resistance line during eight-day-long bearish trend, suggesting return of upside momentum.
Rising support line from early March, YTD low joins downbeat RSI to challenge Mexican Peso buyers.

Anil Panchal FXStreet

USD/MXN eases from the intraday high to 18.08 during the first positive day in three heading into Friday’s European session.

In doing so, the Mexican Peso (MXN) pair retreats from a downward-sloping resistance line from late March while fading the bounce off a five-week-old support line, marked the previous day.

Given the downward-sloping RSI (14), the USD/MXN weakness appears elusive. On top of that, the RSI line currently pokes an eight-day-long trend line resistance and hence a breakout can allow the momentum to improve, which in turn can trigger the pair’s rebound.

However, the 100-SMA and the 200-SMA levels, respectively around 18.20 and 18.32, can challenge the USD/MXN bulls. Also acting as an upside filter is the monthly high of 18.40.

It’s worth noting that the Mexican Peso buyers need validation from an upward-sloping support line from early March, around the 18.00 round figure, as well as from the RSI (14) that is currently weak.

Even if the USD/MXN price breaks the 18.00 support, the Year-To-Date (YTD) support near 17.89, marked in March, should lure the bears.

USD/MXN: Four-hour chart

Trend: Recovery expected

Additional important levels

Overview
Today last price	18.08
Today Daily Change	0.0674
Today Daily Change %	0.37%
Today daily open	18.0126

Trends
Daily SMA20	18.3034
Daily SMA50	18.4205
Daily SMA100	18.8379
Daily SMA200	19.4358

Levels
Previous Daily High	18.1237
Previous Daily Low	17.9753
Previous Weekly High	18.4018
Previous Weekly Low	17.966
Previous Monthly High	19.2324
Previous Monthly Low	17.8977
Daily Fibonacci 38.2%	18.032
Daily Fibonacci 61.8%	18.067
Daily Pivot Point S1	17.9507
Daily Pivot Point S2	17.8888
Daily Pivot Point S3	17.8022
Daily Pivot Point R1	18.0991
Daily Pivot Point R2	18.1856
Daily Pivot Point R3	18.2475

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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