USD/MXN Price Analysis: Mexican Peso sellers inch closer to taking control, focus on 17.10 and US data
- USD/MXN seesaws at three-week high, challenges multi-day-old bearish channel formation.
- Clear break of 21-DMA, upbeat oscillators favor Mexican Peso sellers.
- 50-DMA acts as additional check for USD/MXN bulls.
USD/MXN bulls keep the reins for the fourth consecutive day despite the early Asian session inaction on Thursday, making rounds to 17.05 at the latest. In doing so, the Mexican Peso (MXN) pair prods the top line of a downward-sloping trend channel established since May 16, 2023.
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USD/MXN pair’s first daily closing beyond the 21-DMA in a month joins the bullish MACD signals and upbeat RSI (14) line, not overbought, to add strength to the upside bias surrounding the pair.
However, a clear break of the stated channel’s top line won’t be enough for the USD/MXN bulls as the 50-DMA acts as an extra check around 17.10.
In a case where the USD/MXN offers a daily closing beyond 17.10, its run-up towards the previous monthly high of near 17.40 can’t be ruled out. Following that, the 100-DMA hurdle of 17.58 will be in the spotlight.
Alternatively, pullback moves need to provide a daily close beneath the 21-DMA level of 16.90 to recall the USD/MXN sellers.
Even so, a three-week-old horizontal support zone around 16.70 and the latest multi-month low marked the last week near 16.62 can test the bears.
However, a clear break of 16.62 will make the USD/MXN pair vulnerable to slump toward the stated falling channel’s bottom line surrounding 16.40.
USD/MXN: Daily chart
Trend: Further upside 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.
