USD/MXN Price Analysis: RSI conditions prod Mexican Peso buyers around 17.53-54 region
- USD/MXN takes offers to approach 13-day-old horizontal support zone, down for the third consecutive day.
- Oversold RSI (14) line challenges Mexican Peso pair’s further downside toward yearly bottom.
- 200-SMA, two-month-old descending resistance line check USD/MXN bulls before giving them control.
USD/MXN holds lower ground near the lowest levels in a fortnight, mildly offered around 17.57 during early Tuesday in Europe, as it prints a three-day losing streak.
In doing so, the Mexican Peso (MXN) pair approaches a short-term key horizontal support comprising multiple levels marked since May 11, around 17.53-54. Adding strength to the stated horizontal support is the RSI (14) line poking the oversold territory.
Should the USD/MXN pair remains bearish past 17.53, it can quickly prod the yearly low marked the last week around 17.42.
It’s worth noting that the quote’s sustained weakness past 17.42 makes it vulnerable to plunging towards the year 2016 bottom of around 17.05 and then to the 17.00 round figure.
Meanwhile, the USD/MXN pair’s expected recovery appears to have a limited upside room as the 17.62-63 zone, comprising multiple levels marked since May 11, guards the immediate rise.
Following that, the 200-SMA hurdle of 17.85 and a descending resistance line from early April, close to 17.92, can challenge the pair buyers ahead of directing them to the 18.00 round figure.
Overall, USD/MXN is likely to recover but the upside room appears limited.
USD/MXN: Four-hour chart
Trend: Limited downside expected
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.
