USD/MXN Price Analysis: Mexican Peso retreats to 17.00 but bears are far from home
- USD/MXN picks up bids to snap three-day downtrend at the lowest level in a fortnight.
- Firmer RSI, multiple supports around the 17.00 teased Mexican Peso sellers.
- Weekly resistance line, 200-HMA restrict immediate recovery while 17.33 holds the key to buyer’s conviction.
USD/MXN Price remains on the front foot around the intraday high near 17.10, printing the first daily gain in four amid early Wednesday. In doing so, the Mexican Peso (MXN) pair approaches the weekly resistance line surrounding 17.11 while justifying the upbeat RSI (14) line.
However, the 200-HMA and the previous support line from June 16, respectively close to 17.14 and 17.20, can restrict further upside of the USD/MXN pair.
Even if the quote rises past 17.20, a 13-day-old horizontal area and multiple levels marked from June 08, around 17.25 and 17.33 in that order, will challenge the USD/MXN bulls before giving them control.
On the contrary, pullback moves may aim for the 17.00 psychological magnet while challenging the yearly bottom.
Following that, the November 2021 high of around 16.91 may prod the USD/MXN sellers before directing them to the late 2021 bottom surrounding 16.32.
Overall, USD/MXN remains in the bearish trajectory unless crossing the 17.33 hurdle despite the latest corrective bounce. However, the 17.00 threshold appears a tough nut to crack for Mexican Peso buyers.
USD/MXN: Hourly 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.
