USD/MXN Price Analysis: Mexican Peso grinds between 21-DMA and 10-DMA around 16.85
- USD/MXN licks its wounds within one-week-old trading range.
- MACD, RSI signals prod short-term Mexican Peso buyers but falling trend channel from mid-May keeps the bulls hopeful.
- Fortnight-old horizontal support acts as additional trading filter, bulls need validation from 17.42 to retake control.
USD/MXN stabilizes near 16.85 amid an inactive Thursday morning in Asia, after posting heavy losses the previous day. With this, the Mexican Peso (MXN) pair stays within its one-week-long trading range between the 21-DMA and 10-DMA.
Given the Mexican Peso pair’s latest rebound from the 10-DMA gaining support from the bullish MACD signals and the steady RSI (14) line, the USD/MXN price is likely to improve.
However, a clear upside break of the 21-DMA hurdle of around 16.95 becomes necessary to convince the pair buyers.
Even so, a 10-week-old bearish trend channel, currently between 17.14 and 16.35, will restrict the USD/MXN upside.
It’s worth observing that a horizontal area comprising multiple levels marked since mid-May, around 17.38-42, acts as the last defense of the USD/MXN bears.
On the contrary, a downside break of the 10-DMA support of around 16.82 isn’t an open welcome for the USD/MXN bears as a fortnight-old horizontal support near 16.70 acts as a tough nut to crack for the sellers.
Following that, the bottom line of the previously mentioned bearish channel, near 16.35, will lure the pair bears ahead of highlighting the 16.00 round figure.
USD/MXN: Daily chart
Trend: Limited recovery 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.
