USD/MXN Price Analysis: Mexican Peso pares Banxico-inflicted losses below 50-EMA

USD/MXN retreats from key EMA hurdle, fades the previous day’s rebound from one-week low.
Banxico kept benchmark interest rates unchanged on mixed inflation clues.
Bullish MACD signals keep Mexican Peso sellers hopeful of crossing four-month-old resistance.
Bears need validation from 16.70 and US inflation data to keep the reins.

Anil Panchal FXStreet

USD/MXN clings to mild losses near 17.11 heading into Friday’s European session as market players seek more clues to defend the previous day’s recovery from the weekly low. In doing so, the Mexican Peso (MXN) pair fades the currency’s fall past Banxico’s status quo amid fears of the Federal Reserve’s (Fed) policy pivot.

That said, the bullish MACD signals join the USD/MXN pair’s ability t stay beyond the 21-day Exponential Moving Average (EMA) and five-week-old horizontal support to keep the buyers hopeful to visit the area between 17.00 and 16.98.

Even so, the 50-EMA hurdle of 17.14 guards the immediate upside of the USD/MXN pair, a break of which could direct the Mexican Peso (MXN sellers toward the downward-sloping resistance line from early April, close to 17.28 at the latest.

It’s worth observing that the monthly high of nearly 17.42 acts as the final defense of the Mexican Peso buyers.

On the flip side, a clear break below the 16.98 support needs validation from the previous monthly low of around 16.62 to convince the USD/MXN bears.

Overall, USD/MXN remains on the bull’s radar despite the latest retreat.

USD/MXN: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	17.1102
Today Daily Change	-0.0260
Today Daily Change %	-0.15%
Today daily open	17.1362

Trends
Daily SMA20	16.922
Daily SMA50	17.0671
Daily SMA100	17.4979
Daily SMA200	18.2627

Levels
Previous Daily High	17.1426
Previous Daily Low	16.9101
Previous Weekly High	17.4274
Previous Weekly Low	16.6694
Previous Monthly High	17.3957
Previous Monthly Low	16.6258
Daily Fibonacci 38.2%	17.0538
Daily Fibonacci 61.8%	16.9989
Daily Pivot Point S1	16.9834
Daily Pivot Point S2	16.8305
Daily Pivot Point S3	16.7509
Daily Pivot Point R1	17.2158
Daily Pivot Point R2	17.2954
Daily Pivot Point R3	17.4482

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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