USD/MXN Price Analysis: Pair remains sideways ahead of US data, hovers around 16.75
- USD/MXN consolidates before the release of the US economic data.
- Seven-day EMA appears to be the immediate resistance aligned to both 14-day EMA and 23.6% Fibo.
- MACD indicates that recent momentum is weaker.
USD/MXN hovers around 16.75 ahead of the European session kicking off on Thursday. The pair witnessed downward pressure due to the moderate data from Mexico and cautious sentiment ahead of the US Federal Reserve’s (Fed) preferred inflation gauge, notably the US Core Personal Consumption Expenditure (PCE) Price Index for August.
The seven-day Exponential Moving Average (EMA) at 16.80 emerges as the immediate barrier lined up with both 14-day EMA and 23.6% Fibonacci retracement at 16.87. A firm break above the latter could open the doors for the USD/MXN pair to explore the region around 38.2% Fibonacci retracement at 16.97.
On the flip side, the pair could meet the key support around the monthly low at 16.69 level, followed by July’s low at 16.62 level. A break below that level could inspire the bears of the pair to navigate the region around a 16.50 psychological level.
The 14-day Relative Strength Index (RSI) remains below 50, indicating a bearish bias of the USD/MXN traders. The Moving Average Convergence Divergence (MACD) line remains below the centerline and shows the divergence below the signal line, which indicates that recent momentum is weaker.
In the short term, the underlying trend remains bearish as long as the USD/MXN pair stays below the 50-day EMA at 17.07.
USD/MXN: Daily Chart
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
