USD/MXN Price Analysis: Mexican Peso sellers tighten grip above 18.00
- USD/MXN regains upside momentum after probing bulls the previous day.
- Sustained trading above six-week-old ascending support line, looming bull cross on MACD favor buyers.
- 21-DMA holds the key to further run-up towards monthly top, bearish trend remain intact below 18.90.
- Downside break of 18.00 could trigger fresh fall targeting YTD low.
USD/MXN picks up bids to 18.07 as it grinds near intraday high, up 0.15% on a day amid early Thursday in Europe.
That said, the Mexican Peso (MXN) pair snapped a three-day uptrend the previous day but failed to provide a daily closing beneath an important support line, which in turn joined a looming bull cross on the MACD indicator to recall the buyers.
Not only the impending price-positive signals on the MACD indicator and the pair’s sustained trading beyond a 1.5-month-old support line but steady RSI (14) also hints at the continuation of the recovery moves.
With this, the USD/MXN buyers are all set to approach the 21-DMA hurdle of around 18.15, a break of which could propel the prices toward the monthly high of 18.40.
It’s worth noting, however, that the USD/MXN run-up beyond 18.40 highlights a downward-sloping resistance line from the last September, around 18.90, which holds the key to reversing the pair’s multi-month-old bearish trend.
On the contrary, an upward-sloping trend line from early March, close to the 18.00 round figure, puts a floor under the USD/MXN prices for the short term.
Following that, the recently flashed multi-month low of 17.89 and lows marked in June 2017 around 17.80, as well as the year 2017 bottom surrounding 17.44, will be in the spotlight.
USD/MXN: Daily chart
Trend: Further 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.
