- USD/MXN picks up bids to extend the previous day’s rebound from 50-DMA.
- 11-week-old descending trend line challenges Mexican Peso pair buyers.
- 100-DMA, double tops around 19.20 also challenge the upside moves.
- Oscillators are well in support of bulls even as multiple hurdles test the north run.
USD/MXN grinds near intraday high of 18.96 as bulls poke the key resistance line during early Monday. In doing so, the Mexican Peso (MXN) pair remains firmer for the second consecutive day while extending previous day’s rebound from the 50-DMA.
In addition to the pair’s recovery from the 50-DMA, bullish MACD signals and upbeat RSI (14), not overbought, also favor the USD/MXN pair buyers.
However, a clear upside break of the stated resistance line, near 19.00 at the latest, becomes necessary for the USD/MXN bulls to keep the reins.
Following that, the 61.8% Fibonacci retracement level of the pair’s downturn from December 2022 to March 2023, close to 19.15, will precede the double tops around 19.20 to challenge the buyers.
Furthermore, the previous monthly high surrounding 19.30 act as an extra filter towards the north.
On the contrary, pullback moves remain elusive unless the USD/MXN price remains beyond the 50-DMA support of near 18.60.
Even if the pair drops below 18.60, the late February swing high near 18.50 can act as a buffer ahead of directing the bears towards the multi-month low marked earlier in March near 17.90.
Overall, USD/MXN is likely to recovery but the road towards the north appears long and bumpy.
USD/MXN: Daily chart
Trend: Further upside expected
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