USD/MXN Price Analysis: Mexican Peso slides to 50-HMA, bulls remain hopeful above 17.35
- USD/MXN prints the first daily gains in three, bounces off the lowest levels since 2016.
- Immediate resistance break joins upbeat oscillators to favor short-term pair buyers.
- Mexican Peso sellers need to conquer 200-HMA to topple bulls.
USD/MXN grinds near intraday high of around 17.20 as it prod the 50-Hour Moving Average (HMA) during the first positive day in three on early Thursday. In doing so, the Mexican Peso (MXN) pair defends the late Wednesday’s rebound from the lowest levels since 2016.
That said, a clear break of the previous resistance line stretched from Tuesday joins bullish MACD signals and upbeat RSI (14) line, not overbought, to keep the USD/MXN bulls hopeful.
However, multiple hurdles toward the north keep challenging the pair’s upside momentum.
Among them, the 50-HMA level of around 17.21 guards immediate recovery ahead of a one-week-old downward-sloping resistance line, around 17.25 by the press time.
Following that, the 100-HMA and the 200-HMA, respectively near 17.26 and 17.35 in that order, will challenge the USD/MXN bulls before giving control to them.
On the flip side, a clear break of the resistance-turned-support line, near 17.16 by the press time, becomes necessary to convince USD/MXN sellers.
Following that, the bears may easily conquer the latest trough of 17.07 in search of poking the 17.00 psychological magnet.
It should be noted that the year 2016 bottom of around 17.05 acts as an extra filter toward the south.
USD/MXN: Hourly chart
Trend: Pullback 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.
