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USD/MXN Price Analysis: Mexican Peso grinds near 18.00 within symmetrical triangle

  • USD/MXN picks up bids to refresh intraday high, consolidates the biggest daily loss in a month.
  • Bearish MACD signals challenge Mexican Peso sellers, 200-EMA acts as additional upside hurdle for the pair.
  • Multiple levels towards the south challenge USD/MXN bears inside three-week-old triangle.

USD/MXN renews its intraday high near 18.09 as it pares the biggest daily loss in one month during early Friday. In doing so, the Mexican Peso (MXN) pair remains inside a three-week-old symmetrical triangle, reversing the pullback from the top of late.

It’s worth noting that the pair’s repeated failures to cross the 200-bar Exponential Moving Average (EMA) join bearish MACD signals to keep the USD/MXN bears hopeful despite the pair’s latest rebound.

That said, the 38.2% and 50% Fibonacci retracement levels of the USD/MXN’s April 05-16 fall, respectively near 18.11 and 18.16, act as nearby resistance for the buyers to watch before challenging the stated triangle’s top line, close to 18.18.

Following that, the 200-EMA level of 18.20 can act as the last defense of the bears before signaling a run-up toward the monthly high of near 18.40.

Alternatively, a 23.6% Fibonacci retracement puts the short-term price limit under the pair near 18.04, a break of which will highlight the aforementioned triangle’s lower line, currently around the 18.00 round figure.

In a case where the USD/MXN bears keep the reins, the monthly low near 17.93 and the previous monthly bottom surrounding 17.89 can prod the downside moves before signaling a fall towards the year 2017 trough of around 17.44.

USD/MXN: Four-hour chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price18.0834
Today Daily Change0.0445
Today Daily Change %0.25%
Today daily open18.0389
 
Trends
Daily SMA2018.086
Daily SMA5018.2758
Daily SMA10018.6967
Daily SMA20019.3062
 
Levels
Previous Daily High18.2
Previous Daily Low18.0182
Previous Weekly High18.1542
Previous Weekly Low17.9329
Previous Monthly High19.2324
Previous Monthly Low17.8977
Daily Fibonacci 38.2%18.0877
Daily Fibonacci 61.8%18.1306
Daily Pivot Point S117.9714
Daily Pivot Point S217.9039
Daily Pivot Point S317.7895
Daily Pivot Point R118.1532
Daily Pivot Point R218.2676
Daily Pivot Point R318.3351

Author

Anil Panchal

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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