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.

Anil Panchal FXStreet

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.

Also read: Forex Today: Dollar stays firm as upbeat US jobs data offsets credit downgrade

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

Additional important levels

Overview
Today last price	17.0296
Today Daily Change	0.0056
Today Daily Change %	0.03%
Today daily open	17.024

Trends
Daily SMA20	16.8932
Daily SMA50	17.1306
Daily SMA100	17.5921
Daily SMA200	18.3413

Levels
Previous Daily High	17.08
Previous Daily Low	16.8336
Previous Weekly High	17.0097
Previous Weekly Low	16.6258
Previous Monthly High	17.3957
Previous Monthly Low	16.6258
Daily Fibonacci 38.2%	16.9859
Daily Fibonacci 61.8%	16.9277
Daily Pivot Point S1	16.8785
Daily Pivot Point S2	16.7329
Daily Pivot Point S3	16.6322
Daily Pivot Point R1	17.1248
Daily Pivot Point R2	17.2255
Daily Pivot Point R3	17.3711

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.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold trims losses, back below $5,400

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.