USD/MXN Price Analysis: Pares gains below 17.1350, Fed decision eyed

USD/MXN reverses the previous day’s gains ahead of the Fed policy decision.
MACD shows a pattern of divergence below the signal line; indicating a momentum shift.
The immediate support appears around the weekly low, followed by the 17.0000 psychological level.

Akhtar Faruqui FXStreet

USD/MXN retraces the previous day’s gains, trading lower around 17.1040 during the European session on Tuesday. Investors caution ahead of the US Federal Reserve’s (Fed) policy decision contributes the support for undermining the pair.

The immediate support for the USD/MXN pair appears around the weekly low at 17.0308, followed by the 17.0000 psychological level.

If bearish sentiment exerts pressure, the pair could potentially approach the next support level near the 16.9000 psychological level.

The USD/MXN pair could face a challenge around the seven-day Exponential Moving Average (EMA) at 17.1625, following the 23.6% Fibonacci retracement at 17.1904 level.

A firm break above the latter could open the doors for the pair to explore the region around the 17.2000 psychological level.

The Moving Average Convergence Divergence (MACD) line remains above the centerline, but it exhibits a pattern of divergence beneath the signal line. This pattern indicates that the recent uptrend in the USD/MXN pair is losing strength.

However, the 14-day Relative Strength Index (RSI) indicates bearish momentum in the short term as it lies below the 50 level.

USD/MXN: Daily Chart

USD/MXN: additional important levels

Overview
Today last price	17.1044
Today Daily Change	-0.0311
Today Daily Change %	-0.18
Today daily open	17.1355

Trends
Daily SMA20	17.1046
Daily SMA50	17.0167
Daily SMA100	17.2252
Daily SMA200	17.9425

Levels
Previous Daily High	17.1825
Previous Daily Low	17.0304
Previous Weekly High	17.5959
Previous Weekly Low	17.0504
Previous Monthly High	17.4274
Previous Monthly Low	16.6945
Daily Fibonacci 38.2%	17.1244
Daily Fibonacci 61.8%	17.0885
Daily Pivot Point S1	17.0497
Daily Pivot Point S2	16.964
Daily Pivot Point S3	16.8976
Daily Pivot Point R1	17.2019
Daily Pivot Point R2	17.2683
Daily Pivot Point R3	17.354

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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