USD/MXN Price Analysis: Multiple Doji candlesticks challenge Mexican Peso traders near 18.00
- USD/MXN struggles for clear directions as it flirts with short-term key support.
- Multiple Doji candlesticks, sluggish oscillators suggest Mexican Peso buyers run out of steam.
- USD/MXN needs validation from 21-day EMA to convince short-term
USD/MXN appears indecisive around 18.00 amid early Tuesday in Europe, keeping the three-day trend of inaction.
That said, the Mexican Peso (MXN) pair has been lackluster and portrays Doji candlesticks since the last Friday. While doing the same, the quote also seesaws around a five-week-old ascending support line, close to 17.99 by the press time.
Apart from the Doji candlesticks that show traders’ indecision and challenge the USD/MXN pair’s downward trajectory from late March, the sluggish RSI (14) and MACD signals also tease the Mexican Peso sellers.
However, a daily closing beyond the 21-day Exponential Moving Average (EMA), close to 18.20 at the latest, becomes necessary for the USD/MXN buyers to convince intraday traders.
Following that, the monthly high of 18.40 and the 19.00 round figure will gain the market’s attention.
Should the USD/MXN bulls keep the reins past 19.00, tops marked during March and February, around 19.23 and 19.30 respectively, will be in the spotlight.
Alternatively, a daily closing below the aforementioned support line, close to 17.99, will be enough to challenge the multi-month low marked earlier in March, near 17.89.
If at all the USD/MXN remains bearish past 17.89, multiple lows marked in June 2017 around 17.80 and the year 2017 bottom surrounding 17.44 could please the bears afterward.
USD/MXN: Daily chart
Trend: 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.
