USD/MXN Price Analysis: Mexican Peso sellers flex muscles, 17.20 in the spotlight

USD/MXN struggles to defend two-day winning streak ahead of Fed Minutes.
Impending bull cross between 50-HMA and 200-HMA joins firmer RSI (14) line to favor Mexican Peso sellers.
Pair seller need dovish remarks in FOMC Minutes, clear break of 17.00 to retake control.

Anil Panchal FXStreet

USD/MXN retreats to 17.35 as bulls struggle to keep the reins amid the market’s consolidation ahead of the Federal Reserve’s (Fed) monetary policy meeting minutes. That said, the Mexican Peso (MXN) pair drops for the first day so far in three while fading the previous day’s rebound from the 200-Hour Moving Average (HMA).

It’s worth noting, however, that the 50-HMA is closing in on the 200-HMA from below and portrays a looming bull cross to lure the USD/MXN buyers.

Also suggesting the quote’s further upside is the RSI (14) line that stays sturdy beyond the 50.0 level.

Even so, the USD/MXN bulls need to cross the one-week-old falling resistance line surrounding 17.20, as well as gain support from the dovish minutes of the Federal Open Market Committee’s (FOMC) latest Monetary Policy Meeting Minutes, to retake control.

Following that, a horizontal area comprising levels marked since August 04, near 17.30, can prod the USD/MXN pair’s further upside before marking a run-up toward the monthly peak of near 17.42.

On the flip side, the 200-HMA and the 50-HMA restrict the immediate downside of the Mexican Peso pair to around 17.09-08.

In a case where the USD/MXN drops below the 17.08 support line, a convergence of an upward-sloping trend line from July 28 and the 50% Fibonacci retracement of late July to early August upside, near the 17.00 threshold, appears a tough nut to crack for the bears.

USD/MXN Price: Hourly chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	17.1359
Today Daily Change	-0.0120
Today Daily Change %	-0.07%
Today daily open	17.1479

Trends
Daily SMA20	16.9706
Daily SMA50	17.0429
Daily SMA100	17.4596
Daily SMA200	18.2262

Levels
Previous Daily High	17.1888
Previous Daily Low	17.0388
Previous Weekly High	17.2852
Previous Weekly Low	16.9101
Previous Monthly High	17.3957
Previous Monthly Low	16.6258
Daily Fibonacci 38.2%	17.1315
Daily Fibonacci 61.8%	17.0961
Daily Pivot Point S1	17.0615
Daily Pivot Point S2	16.9751
Daily Pivot Point S3	16.9114
Daily Pivot Point R1	17.2116
Daily Pivot Point R2	17.2752
Daily Pivot Point R3	17.3616

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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