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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	17.574
Today Daily Change	-0.0186
Today Daily Change %	-0.11%
Today daily open	17.5926

Trends
Daily SMA20	17.7332
Daily SMA50	17.9863
Daily SMA100	18.3068
Daily SMA200	19.0323

Levels
Previous Daily High	17.639
Previous Daily Low	17.5348
Previous Weekly High	17.9981
Previous Weekly Low	17.6165
Previous Monthly High	18.4018
Previous Monthly Low	17.9329
Daily Fibonacci 38.2%	17.5746
Daily Fibonacci 61.8%	17.5992
Daily Pivot Point S1	17.5386
Daily Pivot Point S2	17.4846
Daily Pivot Point S3	17.4344
Daily Pivot Point R1	17.6428
Daily Pivot Point R2	17.693
Daily Pivot Point R3	17.747

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.

GBP/USD hits fresh three-month highs above 1.3550

GBP/USD stretches north and refreshes three-month highs above 1.3500 in the European session on Monday. The prevalent US Dollar selling bias favors bullish traders and suggests that the path of least resistance for the pair remains to the upside.

EUR/USD extends gains above 1.1600 on USD weakness

EUR/USD extends its advance above 1.1600 in European trading hours on Monday. The US Dollar resumes its downside amid weaker-than-expected US economic data, shifting Fed expectations and fading geopolitical risk premium.

Gold looks to build strength above $4,400 amid fading Fed hike bets

Gold builds on Friday's bounce from the $4,300 neighborhood and attracts some follow-through buyers at the start of a new week. The commodity is now looking to extend momentum above the $4,400 mark, though it remains below the highest level since June 5, touched last Thursday, amid mixed fundamental cues.

Pepe defends a key support amid mixed retail demand

Pepe is up nearly 2% after a 10% decline last week, showing signs of a mild recovery, while broader crypto market risk appetite remains weak. PEPE derivatives data point to a mixed outlook, as Open Interest declines while funding rates turn positive. Technically, PEPE must hold above its $0.00000255 support floor to avoid a downside of over 10%.

US Dollar Weekly Forecast: Economic cracks challenge Fed rate bets

It was a strange week for the US Dollar: while the geopolitical situation has remained largely unchanged, with the usual back-and-forth between the US, Iran, and occasional third parties, disappointing domestic data have re-emerged, reducing expectations of potential tightening by the Federal Reserve in the next few months.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.