USD/MXN Price Analysis: Retreats towards 18.55 support to confirm double top bearish chart pattern

USD/MXN reverses from 100-HMA hurdle to pare intraday gains.
Bearish chart formation needs confirmation from 18.55, downbeat oscillators keep sellers hopeful.
200-HMA acts as additional downside filter, bulls need validation from February’s top to tighten the grips.

Anil Panchal FXStreet

USD/MXN bears remain hopeful as the Mexican Peso (MXN) pair take a U-turn from the 100-Hour Moving Average (HMA) to pare intraday gains around 18.75 during early Friday.

Not only the failure to cross the 100-HMA but bearish MACD signals and downbeat RSI (14), not oversold, also favor the USD/MXN sellers.

Above all, the pair’s “double top” bearish chart pattern, by reversing twice from the 19.20 hurdle, keeps the USD/MXN sellers hopeful.

However, a clear downside break of the stated pattern’s lower end, around 18.55, becomes necessary for the bears to retake control.

Following that, the 200-HMA level of 18.45 may act as a buffer during the theoretical fall targeting the monthly low surrounding 17.90, also the lowest level since 2017.

Meanwhile, recovery moves, need to cross the 100-HMA hurdle of 18.80 to convince intraday buyers.

Even so, the previous support line from March 09, close to 18.93 at the latest, could challenge the USD/MXN pair’s run-up towards the double tops marked around 19.20.

In a case where USD/MXN crosses the 19.20 hurdle, February’s peak of 19.29 and the 20.00 psychological manget appear as the key upside levels to watch for buyers.

USD/MXN: Hourly chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	18.739
Today Daily Change	0.0250
Today Daily Change %	0.13%
Today daily open	18.714

Trends
Daily SMA20	18.3675
Daily SMA50	18.6383
Daily SMA100	19.0792
Daily SMA200	19.63

Levels
Previous Daily High	19.1799
Previous Daily Low	18.6976
Previous Weekly High	18.5957
Previous Weekly Low	17.8977
Previous Monthly High	19.2901
Previous Monthly Low	18.2954
Daily Fibonacci 38.2%	18.8818
Daily Fibonacci 61.8%	18.9956
Daily Pivot Point S1	18.5478
Daily Pivot Point S2	18.3816
Daily Pivot Point S3	18.0656
Daily Pivot Point R1	19.0301
Daily Pivot Point R2	19.3461
Daily Pivot Point R3	19.5123

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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