- USD/MXN remains sidelined near one-week-old ascending support line after falling the most since March 2022.
- Clear U-turn from 2.5-month-old descending resistance line, bearish MACD signals keep sellers hopeful.
- 200-SMA acts as an extra filter towards the south.
USD/MXN holds lower ground near 18.61 as bears poke one-week-old ascending support line during early Wednesday. In doing so, the Mexican Peso (MXN) pair justifies the bearish MACD signals, as well as the quote’s U-turn from a downward-sloping resistance line from December 30, 2022.
It’s worth noting that the 200-SMA level surrounding 18.50 acts as additional support, other than the aforementioned trend line of near 18.60.
In a case where USD/MXN remains weak past 18.50, the odds of witnessing a slump towards the weekly low near 18.20 and then to the March 07 peak of 18.17 can’t be ruled out.
Should the MXN pair manage to conquer the 18.17 support, the bears can quickly approach the 18.00 psychological magnet before eyeing the monthly low of 17.90, also the lowest levels since October 2018.
On the contrary, USD/MXN recovery could initially aim for the 50% and 61.8% Fibonacci retracement level of the pair’s declines from late December 2022 to early March 2023, respectively near 18.75 and 18.95 in that order.
However, the pair buyers remain off the table unless successfully cross the multi-day-old resistance line, around the 19.00 round figure.
Overall, USD/MXN is likely to remain bearish even as the downside room appears limited.
USD/MXN: Four-hour chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.