- USD/MXN remains depressed near a one-and-half-week low touched on Thursday.
- Some follow-through selling below the 50-day SMA will confirm a fresh breakdown.
- Attempted recovery might now confront resistance near the 17.20-17.25 confluence.
The USD/MXN pair struggles to gain any meaningful traction during the Asian session on Friday and languishes near the 17.10-17.05 region, or a one-and-half-week low touched the previous day.
The aforementioned area represents the 61.8% Fibonacci retracement level of the rally from the August monthly swing low, which should now act as a key pivotal point for intraday traders. Meanwhile, technical indicators on the daily chart have just started drifting in the negative territory and support prospects for an extension of the USD/MXN pair's downfall witnessed over the past week or so.
That said, it will still be prudent to wait for a convincing break below the 50-day Simple Moving Average (SMA), around the 17.00 mark, before positioning for a further depreciating move. Spot prices might then weaken below the 16.90 intermediate support and challenge a multi-year low, near the 16.70 area touched in August. Some follow-through selling will be seen as a fresh trigger for bearish traders.
On the flip side, any meaningful recovery might now confront stiff resistance and remain capped near the 17.20-17.25 confluence, comprising the 50% Fibo. level and the 100-day SMA. The next relevant hurdle is pegged near the 38.2% Fibo. level, around the 17.35 region, above which the USD/MXN could surpass the 23.6% Fibo. barrier near the 17.45-17.50 barrier and retest the multi-month top, around the 17.70 zone.
USD/MXN daily chart
Technical levels to watch
|Today last price||17.0982|
|Today Daily Change||-0.0120|
|Today Daily Change %||-0.07|
|Today daily open||17.1102|
|Previous Daily High||17.209|
|Previous Daily Low||17.0734|
|Previous Weekly High||17.7094|
|Previous Weekly Low||17.0447|
|Previous Monthly High||17.4274|
|Previous Monthly Low||16.6945|
|Daily Fibonacci 38.2%||17.1252|
|Daily Fibonacci 61.8%||17.1572|
|Daily Pivot Point S1||17.0527|
|Daily Pivot Point S2||16.9952|
|Daily Pivot Point S3||16.9171|
|Daily Pivot Point R1||17.1883|
|Daily Pivot Point R2||17.2664|
|Daily Pivot Point R3||17.3239|
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