USD/MXN Price Analysis: Mexican Peso buyers lurk around 19.10
- USD/MXN struggles for clear directions after posting one more failure to cross 100-DMA, 5.5-month-old resistance line.
- Bullish MACD signals, sustained trading beyond two-month-long horizontal support keep buyers hopeful.
- Descending resistance line from July 2022, 200-DMA act as additional upside filters to prod the Mexican Peso pair buyers.
USD/MXN seesaws around 18.95, mildly offered during early Thursday, after posting another failure to cross the 19.10 resistance confluence the previous day.
It’s worth noting that the risk-off mood propelled Mexican Peso (MXN) pair the previous day but failed to cross the convergence of the 100-DMA and a downward-sloping resistance line from late September 2022, around 19.10 at the latest.
The corrective pullback, however, remains elusive amid the bullish MACD signals. Also likely to challenge the USD/MXN bears is a two-month-old horizontal support area around 18.50-55.
In a case where the quote drops below 18.50, the 18.00 round figure could test the bears before directing them to the multi-month low marked earlier in March around 17.90.
Alternatively, a clear upside break of the 19.10 hurdle isn’t an open invitation to the USD/MXN bulls as a downward-sloping resistance line from mid-July 2022, around 19.48, precedes the 200-DMA level of 19.63 to challenge the upside momentum.
Even if the USD/MXN buyers manage to keep the reins beyond 19.63, the late 2022 peak surrounding 19.90 and the 20.00 psychological magnet could test the pair’s further advances.
Overall, USD/MXN is likely to pare some of the latest gains but the bears are far from taking control.
USD/MXN: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
