USD/MXN Price Analysis: Peso sellers attack key support around 17.20 ahead of US, Mexico data

USD/MXN prods 15-week-old falling resistance line after a three-day-long winning streak.
Monthly horizontal resistance area adds to the upside filters.
Mexican Peso sellers cheer sustained trading beyond 50-DMA, bullish MACD signals.
Rising trend line from early July acts as the last defense of Mexican Peso bulls.

Anil Panchal FXStreet

USD/MXN bulls attack the key upside hurdle surrounding 17.20, close to 17.17 by the press time of early Tuesday morning in Asia.

The Mexican Peso (MXN) pair rose in the last three consecutive days before poking a downward-sloping resistance line from May 31, close to 17.20 at the latest.

The upside momentum takes clues from the bullish MACD signals and the USD/MXN pair’s ability to stay firmer past the 50-DMA, around 16.97 by the press time.

It’s worth noting, however, that a one-month-old horizontal area adds strength to the 17.18–20 hurdle for the USD/MXN bulls.

Following that, a quick run-up towards the ascending resistance line stretched from early July, surrounding 17.46 at the latest, can’t be ruled out.

On the flip side, the USD/MXN pullback remains elusive unless it stays beyond the 50-DMA support of 16.97. That said, the 17.00 round figure restricts the nearby downside of the quote.

In a case where the Mexican Peso (MXN) pair remains bearish past 16.97, a seven-week-long horizontal area surrounding 16.68–70 will be in the spotlight.

Overall, the USD/MXN pair is likely to remain firmer but the immediate resistance line and the presence of the US Factory Orders for July, as well as Mexican Consumer Confidence for August, test the pair buyers.

USD/MXN: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	17.1754
Today Daily Change	0.0810
Today Daily Change %	0.47%
Today daily open	17.0944

Trends
Daily SMA20	16.9814
Daily SMA50	16.9721
Daily SMA100	17.3048
Daily SMA200	18.0648

Levels
Previous Daily High	17.2025
Previous Daily Low	16.9727
Previous Weekly High	17.2025
Previous Weekly Low	16.6945
Previous Monthly High	17.4274
Previous Monthly Low	16.6945
Daily Fibonacci 38.2%	17.1147
Daily Fibonacci 61.8%	17.0605
Daily Pivot Point S1	16.9773
Daily Pivot Point S2	16.8601
Daily Pivot Point S3	16.7474
Daily Pivot Point R1	17.2071
Daily Pivot Point R2	17.3197
Daily Pivot Point R3	17.4369

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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