- 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
Additional important levels
|Today last price||16.8492|
|Today Daily Change||0.0064|
|Today Daily Change %||0.04%|
|Today daily open||16.8428|
|Previous Daily High||16.9837|
|Previous Daily Low||16.8166|
|Previous Weekly High||17.0512|
|Previous Weekly Low||16.6924|
|Previous Monthly High||17.7286|
|Previous Monthly Low||17.0243|
|Daily Fibonacci 38.2%||16.8804|
|Daily Fibonacci 61.8%||16.9199|
|Daily Pivot Point S1||16.7783|
|Daily Pivot Point S2||16.7139|
|Daily Pivot Point S3||16.6112|
|Daily Pivot Point R1||16.9455|
|Daily Pivot Point R2||17.0482|
|Daily Pivot Point R3||17.1126|
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.