- USD/MXN remains pressured near three-week low, stays within fortnight-old bullish chart pattern.
- Oversold RSI, mildly upbeat MACD signals suggest that Mexican Peso pair bears are running out of steam.
- Multi-month low marked in March puts a floor under the USD/MXN prices.
USD/MXN struggles to push back the bears as it seesaws around the 18.00 round figure headlines into Monday’s European session.
In doing so, the Mexican Peso (MXN) pair pokes a one-week-old descending resistance line while staying inside a fortnight-long falling wedge bullish chart pattern.
It’s worth noting that the overbought RSI (14) and the recently bullish MACD signals tease short-term USD/MXN buyers. However, the aforementioned resistance line, close to 18.05 by the press time, precedes the stated wedge’s top line, near 18.15 at the latest, restricting the short-term upside of the pair.
In a case where the USD/MXN pair remains firmer past 18.15, the 200-SMA level of 18.40 can act as the last check for the bulls on their way to achieving the theoretical target of the falling wedge breakout, namely around 19.40.
That said, the previous monthly high of 19.23 also acts as an extra filter towards the north.
On the other hand, the falling wedge’s lower line near 17.94 puts a floor under the USD/MXN price ahead of the previous monthly low, also the lowest level since September 2017, close to 17.89.
In a case where USD/MXN remains bearish past 17.89, the July 2017 low near 17.45 may lure the bears.
Overall, USD/MXN stays inside a bullish chart pattern but the buyers need validation from 18.15 to retake the control.
USD/MXN: Four-hour chart
Trend: Limited downside expected
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.
Recommended content
Editors’ Picks
AUD/USD holds the bounce toward 0.6450 as USD takes a breather
AUD/USD bounces back from levels unseen since mid-November, eyeing 0.6450 in early Europe on Wednesday. The US Dollar pauses its upsurge, induced by policy divergence and hawkish Fed commentaries. However, a market caution limits the pair's upside.
USD/JPY stays defensive below 155.00 on Japan's FX intervention risks
USD/JPY remains defensive below 155.00 early Wednesday, as the Japanese Yen draws support from impending Japanese intervention risks. A minor pullback in the US Dollar and the US Treasury bond yields also weigh on the pair ahead of more Fedspeak.
Gold remains steady above $2,350 amid market caution
Gold price holds ground near $2,380 per troy ounce on Wednesday, hovering close to record highs as traders exercise caution ahead of Israel's response to Iran's air strike on Saturday.
Fetch.ai Price Prediction: FET must hold above $1.70 for strength
Fetch.ai is trading with a bearish bias. It comes as chatter about the proposed integration with the Ocean Protocol and the SIngularityNET ecosystem remains fresh.
UK CPI March Preview: Inflation pressures to dissipate further, adding to bets of BoE rate cuts
The March UK CPI report will be released by the Office for National Statistics on Wednesday. United Kingdom’s headline and core annual inflation are set to ease in March. The UK CPI report could hint at the BoE’s interest rate cut, rocking the Pound Sterling.