USD/MXN Price Analysis: Doji prods bears at three-week low around 18.00

USD/MXN portrays corrective after refreshing multi-day bottom, sidelined of late.
Bearish MACD signals, sustained trading below key DMA, resistance line favor sellers.
Nearly oversold RSI, Doji candlestick on daily challenges Mexican Peso pair’s further downside.

Anil Panchal FXStreet

USD/MXN licks its wounds near 18.10, after refreshing the three-week low, during early Friday. In doing so, the Mexican Peso pair probes the five-day losing streak after posting a trend reversal suggesting a candlestick, namely Doji, the previous day.

Not only Thursday’s Doji but nearly oversold RSI (14) also suggests the Mexican Peso pair’s recovery.

However, bearish MACD signals and the quote’s sustained trading below the 21-DMA, as well as a fortnight-long descending trend line, keeps sellers hopeful.

As a result, the quote’s latest rebound remains elusive unless it crosses the downward-sloping resistance line from March 20, close to 18.30 by the press time. Even so, the 21-DMA hurdle of 18.43 may test the USD/MXN bulls.

In a case where the USD/MXN pair rises past 18.43, multiple stops around 18.55 and the previous Friday’s peak surrounding 18.80 can challenge the bulls ahead of directing them to the 19.00 threshold. Following that, the monthly of near 19.25 will be in focus.

Alternatively, USD/MXN pair’s fresh downside needs validation from the previous day’s low of 18.04, as well as the 18.00 round figure, to convince sellers.

Though, the monthly low of 17.89 and a downward-sloping support line from late November 2022, around 17.63 at the latest, could challenge the USD/MXN bears afterward.

USD/MXN: Daily chart

Trend: Limited recovery expected

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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