- USD/MXN remains under selling pressure on the weaker of the USD.
- The pair holds below the 50- and 100-day EMAs on the four-hour amid the oversold RSI condition.
- The immediate resistance level is seen at 17.75; 17.46 acts as an initial support level.
The USD/MXN pair extends its downside around 17.51 during the Asian session on Friday. The downtick of the pair is supported by a fall in US Treasury bond yields and a weaker US Dollar (USD). The Federal Open Market Committee (FOMC) held the interest rate steady at its November meeting on Wednesday, as widely expected. Markets are confident that the Fed is nearing the end of the hiking cycle. This, in turn, exerts some selling pressure and acts as a headwind for the pair.
From the technical perspective, USD/MXN holds below the 50- and 100-day Exponential Moving Averages (EMAs) on the four-hour chart, which means the path of the least resistance is to the downside. It’s worth noting that the Relative Strength Index (RSI) stands in a bearish territory below 50. However, the oversold condition indicates that further consolidation cannot be ruled out before positioning for any near-term USD/MXN depreciation.
That being said, the pair could meet the immediate resistance level at 17.75 (low of October 12). The key upside barrier is seen at 18.00. The mentioned level is the confluence of the 100-hour EMA and a psychological mark. The additional upside filter to watch is near the upper boundary of Bollinger Band at 18.27. Further north, the next barrier is located at a high of October 19 at 18.40
On the downside, any decisive follow-through selling below the lower limit of the Bollinger Band at 17.46 will see a drop to a low of September 29 at 17.35. The next contention will emerge at 17.00, representing a round figure and a low of September 20.
USD/MXN four-hour chart
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.