USD/MXN Price Analysis: Eyes 50-day average support

USD/MXN's daily chart shows a contracting triangle breakdown.
Key Indicator has crossed into the bearish territory for first in two months.

Omkar Godbole FXStreet Contributor

USD/MXN is looking south with the daily chart reporting a bearish reversal pattern.

The pair dropped more than 1.5% on Friday, confirming a downside break of the five-week-long narrowing price range on the daily chart. The triangle breakdown indicates that the rally from lows near 18.50 observed in mid-February has ended and the bears have regained control.

The 14-day relative strength index, too, has dropped below 50 for the first time in nearly two months. A below-50reading represents bearish conditions.

The pair, therefore, looks set to test the 50-day average, currently at 23.4290. That would be the first test of the widely-tracked technical line in over two months. On the higher side, a close above 24.082 (Friday's top) is needed to invalidate bearish pressures.

At press time, USD/MXN is trading largely unchanged on the day near 23.6158.

Daily chart

Trend: Bearish

Technical levels

USD/MXN

Overview
Today last price	23.6691
Today Daily Change	0.0000
Today Daily Change %	-0.00
Today daily open	23.6691

Trends
Daily SMA20	24.1621
Daily SMA50	23.3565
Daily SMA100	21.0946
Daily SMA200	20.2672

Levels
Previous Daily High	24.1246
Previous Daily Low	23.5515
Previous Weekly High	24.8895
Previous Weekly Low	23.5515
Previous Monthly High	25.7809
Previous Monthly Low	23.2825
Daily Fibonacci 38.2%	23.7704
Daily Fibonacci 61.8%	23.9056
Daily Pivot Point S1	23.4389
Daily Pivot Point S2	23.2087
Daily Pivot Point S3	22.8658
Daily Pivot Point R1	24.0119
Daily Pivot Point R2	24.3548
Daily Pivot Point R3	24.585

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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