- USD/MXN picks up bids to extend previous recovery from fortnight low.
- Convergence of 100-HMA, one-week-old descending trend line prod pair buyers.
- 200-HMA acts as additional hurdle for Mexican Peso sellers.
- Two-week-old horizontal support is the key for pair bears to conquer.
USD/MXN holds onto the previous day’s recovery from a two-week low as bulls poke a 17.69 resistance confluence during early Wednesday.
In doing so, the Mexican Peso (MXN) pair struggles to extend recovery from a fortnight-long horizontal support while jostling with the short-term key upside hurdle comprising the 100-Hour Moving Average (HMA) and a one-week-old descending trend line.
It’s worth noting that the overbought RSI (14) conditions challenge the USD/MXN buyers around the 17.69 resistance confluence.
Even if the quote crosses the 17.69 key resistance, the 17.70 round figure and the 200-HMA level of 17.76 may act as extra filters toward the north ahead of directing the pair buyers toward the monthly peak of near the 18.00 round figure.
Alternatively, the USD/MXN pair’s pullback remains elusive unless the quote stays beyond the 61.8% Fibonacci retracement level of May 15-23 upside, near 17.64 at the latest.
Should the quote drops below 17.64, it can drop to the aforementioned two-week-old horizontal support zone surrounding 17.54-53.
The USD/MXN pair’s south-run towards the multi-month low marked earlier in May around 17.42 and the year 2016 low of near 17.05 can’t be ruled out.
USD/MXN: Hourly chart
Trend: Limited upside 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
NZD/USD rallies to a fresh three-month top after RBNZ's hawkish pause
The NZD/USD pair gains strong follow-through positive traction on Wednesday and spikes to a fresh three-month peak after the RBNZ announced its policy decision. The central bank left its cash rate unchanged at 5.5% and reiterated that rates will need to remain at a restricted level for a sustained period of time.
AUD/USD hovers above a major level despite softer monthly CPI
The AUD/USD trades higher around the 0.6670 level, extending its gains for the fifth consecutive day on Wednesday. This surge is attributed to a heightened risk appetite in the market and the upward movement in commodity prices. Additionally, the softer US Dollar, influenced is providing support to the pair.
Gold rally extends into $2,040 as Fedspeak sparks Fed pivot bets
Gold price climbed on Tuesday in their best single-day performance in over six weeks, climbing 1.5% on the day and settling at a seven-month peak of $2,044. Markets saw a risk rally as investor sentiment bid up assets across the board, sparked by Dovish Fed comments that sent Gold climbing on the day.
Up by 96% in a week, this altcoin is likely following Solana price rally from 2021
Solana was hailed as the "Ethereum killer" when it skyrocketed back in 2021; however, it failed to displace DeFi's stronghold. Similarly, many altcoins have since emerged, touted as Solana killers, but none have truly succeeded in dethroning it.
Global growth outlook remains cloudy and grey
Prospects for the global economy have dimmed slightly over the past month, with restrictive monetary policy set to weigh on growth prospects for next year. The forecast for global GDP growth in 2023 remains unchanged at 2.8%, while the forecast for 2024 global GDP growth has been revised slightly lower to 2.3%.