USD/MXN Price Analysis: Mexican Peso buyers poke key EMA convergence near 18.60

USD/MXN jostles with the 200-EMA, 100-EMA confluence to prod two-day downtrend.
Bearish MACD signals, downbeat RSI (14) suggest further declines.
Seven-week-old horizontal support appears tough nut to crack for bears.
Buyers need successful break of multi-day-old resistance line for conviction.

Anil Panchal FXStreet

USD/MXN bears take a breather around 18.60 during early Wednesday as market players await the Federal Open Market Committee (FOMC) monetary policy meeting outcome.

Even so, the Mexican Peso (MXN) pair prints mild gains while snapping the previous two-day losing streak at the lowest levels in a week.

That said, the convergence of the 100-bar Exponential Moving Average (EMA) and the 200-EMA restricts the immediate downside of the USD/MXN pair.

However, the bearish MACD signals and downbeat RSI (14), not oversold, keeps sellers hopeful of breaking the 18.60 support confluence.

It’s worth noting, though, that the USD/MXN bears struggled to break the support confluence around 18.50 since early February. Maintenance of the resistance at 18.60 may see the pair may experience a decline towards 18.00.

During the anticipated fall, the mid-March swing low joins the early March peaks to highlight the 18.25-20 region as an extra filter towards the south.

On the flip side, the USD/MXN pair’s rebound from the current levels can again aim for the 19.00 round figure before marking one more battle with a descending resistance line from early January, close to 19.20 at the latest.

Overall, USD/MXN is likely to remain pressured even if the room towards the south appears limited.

USD/MXN: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	18.6135
Today Daily Change	0.0165
Today Daily Change %	0.09%
Today daily open	18.597

Trends
Daily SMA20	18.4231
Daily SMA50	18.6178
Daily SMA100	19.049
Daily SMA200	19.6065

Levels
Previous Daily High	18.8777
Previous Daily Low	18.5925
Previous Weekly High	19.1812
Previous Weekly Low	18.2397
Previous Monthly High	19.2901
Previous Monthly Low	18.2954
Daily Fibonacci 38.2%	18.7014
Daily Fibonacci 61.8%	18.7688
Daily Pivot Point S1	18.5005
Daily Pivot Point S2	18.4039
Daily Pivot Point S3	18.2153
Daily Pivot Point R1	18.7857
Daily Pivot Point R2	18.9743
Daily Pivot Point R3	19.0709

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.

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