USD/MXN Price Analysis: Gains momentum for four straight days above the 17.20 mark, US data eyed

USD/MXN gains traction for the fourth consecutive day on Tuesday.
The immediate resistance level is located at the 17.30-17.35 region; the initial support is seen at the 17.00-17.05 zone.
Relative Strength Index (RSI) stands above 50, within bullish territory.

Lallalit Srijandorn FXStreet

The Mexican Peso (MXN) extends its downside against the US Dollar (USD) during the early European session on Tuesday as the Bank of Mexico will reduce its currency hedging program to tame volatility in the market. USD/MXN currently trades near 17.25, gaining 0.45% on the day.

According to the daily chart, USD/MXN holds below the key 100-day Exponential Moving Average (EMA) which means further downside looks favorable. Therefore, the pair could meet the immediate resistance level of the 17.30-17.35 region, representing the upper boundary of the Bollinger Band and the 100-day EMA. The additional upside filter to watch is near a psychological round mark and a high of May 24 at 18.00. Further north, the next barrier is seen at 18.20 (a high of April 27) and finally at 18.40 (a high of April 5).

On the flip side, the initial support level is located at the 17.00-17.05 region. The mentioned level is a confluence of the midline of Bollinger Band, a psychological round figure, and the 50-day EMA. Any extended weakness below the latter will challenge the critical contention at the 16.60-16.70 region, portraying the lower limit of the Bollinger Band and a Year-To-Date (YTD) low. Further south, the pair will see a drop to a psychological round figure at 16.00.

It’s worth noting that the Relative Strength Index (RSI) stands above 50, within bullish territory, suggesting that buyers will likely retain control soon.

USD/MXN daily chart

USD/MXN

Overview
Today last price	17.2497
Today Daily Change	0.0725
Today Daily Change %	0.42
Today daily open	17.1772

Trends
Daily SMA20	16.9872
Daily SMA50	16.9729
Daily SMA100	17.2964
Daily SMA200	18.0541

Levels
Previous Daily High	17.1948
Previous Daily Low	17.0447
Previous Weekly High	17.2025
Previous Weekly Low	16.6945
Previous Monthly High	17.4274
Previous Monthly Low	16.6945
Daily Fibonacci 38.2%	17.1375
Daily Fibonacci 61.8%	17.1021
Daily Pivot Point S1	17.0831
Daily Pivot Point S2	16.9889
Daily Pivot Point S3	16.933
Daily Pivot Point R1	17.2331
Daily Pivot Point R2	17.289
Daily Pivot Point R3	17.3832

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold struggles above $4.150 amid geopolitical escalation

Gold struggles above $4,150 in the Asian session on Tuesday as elevated US Treasury yields and a hawkish Fed keep the US Dollar near its highest level since April 2025. Adding to this, persistent geopolitical uncertainties stemming from Middle East conflicts continue to underpin the safe-haven buck, which, in turn, is seen as weighing on the bullion. Traders now look to US inflation figures for some impetus ahead of Fed Chair Kevin Warsh's appearance on Friday.

Fed hold remains base case, September inflation surprise could push Dollar

The FOMC minutes read as hawkish last week, but they predate the soft September payrolls print and the modest inflation reads since then. We continue to think the Fed will hold rates this month, since we expect a moderate (i.e. 0.2% or less) monthly core print in this week's inflation report for September.

Earnings preview US and Europe: Can the stock market rally continue?

Stocks have been remarkably resilient this year. They have navigated geopolitical turmoil, an energy price spike and surging global bond yields which is rapidly pushing up the cost of borrowing. US blue chip stocks are now in their 4th year of a bull market, however, they now face their toughest test of Q4 so far, the latest earnings updates.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?