USD/MXN Price Analysis: Peso bulls eye fresh high since May 2016 ahead of Mexican Inflation

USD/MXN stays pressured for the fourth consecutive day at multi-day low.
Bearish MACD signals favor clear downside break of three-week-old horizontal support to keep sellers hopeful.
Three-month-old descending support line can prod Mexican Peso buyers amid adverse RSI conditions.

Anil Panchal FXStreet

USD/MXN takes offers to refresh the intraday low near 17.34 during the early hours of Thursday’s European session. In doing so, the Mexican Peso (MXN) pair fades late Wednesday’s corrective bounce off the lowest levels since May 2016 while printing a four-day losing streak.

It’s worth noting that the Bank of Mexico is up for releasing the 12-month Inflation, Core Inflation and Headline Inflation for May, which in turn can prod the USD/MXN bears on matching downbeat forecasts.

That said, the pair sellers take clues from Tuesday’s downside break of three-week-old horizontal support, now resistance around 17.42. Also motivating the USD/MXN sellers are the bearish MACD signals.

However, a downward-sloping support line from early March, near 17.25 by the press time, challenges the pair bears amid the oversold RSI (14) line.

Hence, the Mexican Peso buyers can keep the reins but their dominance appear to have limited reach, till 17.25.

Should the quote break the 17.25 support, the May 2016 low of near 17.05 and the 17.00 psychological magnet will lure the USD/MXN bears.

Meanwhile, recovery moves need to cross the previous support line stretched from mid-May, close to 17.42, to convince intraday buyers.

Even so, a convergence of the 10-DMA and a fortnight-long falling trend line, close to 17.52 at the latest, appears a tough nut to crack for the Mexican Peso sellers to retake control.

USD/MXN: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	17.3512
Today Daily Change	-0.0108
Today Daily Change %	-0.06%
Today daily open	17.362

Trends
Daily SMA20	17.6318
Daily SMA50	17.8616
Daily SMA100	18.2137
Daily SMA200	18.945

Levels
Previous Daily High	17.3967
Previous Daily Low	17.3055
Previous Weekly High	17.7716
Previous Weekly Low	17.4195
Previous Monthly High	18.078
Previous Monthly Low	17.4203
Daily Fibonacci 38.2%	17.3403
Daily Fibonacci 61.8%	17.3619
Daily Pivot Point S1	17.3127
Daily Pivot Point S2	17.2635
Daily Pivot Point S3	17.2215
Daily Pivot Point R1	17.4039
Daily Pivot Point R2	17.4459
Daily Pivot Point R3	17.4951

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.

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