USD/MXN Price Analysis: Mexican Peso retreat gets interesting below 16.83 resistance confluence

USD/MXN defends week-start rebound from multi-year low, sidelined of late.
Upbeat oscillators, sustained break of fortnight-old horizontal support favor Mexican Peso sellers.
Convergence of 200-HMA, descending trend line from July 21 prods USD/MXN bulls.

Anil Panchal FXStreet

USD/MXN remains sidelined near 16.75 during Tuesday’s Asian session, after bouncing off the lowest levels since late 2015 the previous day.

In doing so, the Mexican Peso (MXN) pair justifies the week-start run-up beyond the two-week-old horizontal resistance, now support around 16.70. Adding strength to the stated 16.70 resistance-turned-support is an ascending trend line stretched from late Friday.

That said, the bullish MACD signals and the upbeat RSI (14) line, not overbought, keeps the USD/MXN pair buyers hopeful.

However, a convergence of the 200-Hour Simple Moving Average (HMA) and a downward-sloping trend line from July 21, close to 16.83 by the press time, appears a tough nut to crack for the USD/MXN bulls.

In a case where the Mexican Peso sellers manage to break the 16.83 hurdle, the odds of witnessing a run-up towards the 17.00 threshold and then to the previous monthly high of around 17.40 can’t be ruled out.

On the contrary, a downside break of the 16.70 support confluence could recall the USD/MXN sellers. Even so, the latest swing low of around 16.62 can prod the Mexican Peso buyers before directing them to the October 2015 low of near 16.32.

USD/MXN: Hourly chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	16.7485
Today Daily Change	0.0064
Today Daily Change %	0.04%
Today daily open	16.7421

Trends
Daily SMA20	16.9007
Daily SMA50	17.168
Daily SMA100	17.6287
Daily SMA200	18.3709

Levels
Previous Daily High	16.7886
Previous Daily Low	16.6694
Previous Weekly High	17.0097
Previous Weekly Low	16.6258
Previous Monthly High	17.3957
Previous Monthly Low	16.6258
Daily Fibonacci 38.2%	16.743
Daily Fibonacci 61.8%	16.7149
Daily Pivot Point S1	16.6781
Daily Pivot Point S2	16.6142
Daily Pivot Point S3	16.559
Daily Pivot Point R1	16.7973
Daily Pivot Point R2	16.8525
Daily Pivot Point R3	16.9165

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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