- USD/MXN remains sidelined at one-week low after declining in the last four consecutive days.
- Key DMA confluence prods technical support break and restricts immediate Mexican Peso advances.
- Mexican economy minister Raquel Buenrostro defends decree on genetically modified (GM) corn.
USD/MXN bears take a breather around 17.00, positing the first daily positive in five amid concerns about the US–Mexico trade disputes. That said, the Mexican Peso’s latest tension erupts on comments from Mexican Economy Minister Raquel Buenrostro.
Late Monday, Mexico’s Buenrostro refrained from altering the decree on genetically modified (GM) corn ahead of a dispute settlement panel requested by the United States through the USMCA trade pact, per Reuters.
The news cites the US-Mexico tension that ignited after the US objected to the restrictions imposed by Mexico on imports of GM corn and requested a dispute settlement panel under the North American trade pact.
With this, the USD/MXN traders also take clues from the cautious markets and a light calendar to allow the Mexican Peso (MXN) in paring the latest gains amid sluggish markets.
Also read: USD/MXN sees uptick amid China’s economic concerns, ahead Powell’s Jackson Hole speech
Technical analysis
USD/MXN bears struggle to keep the reins as a convergence of the 50-DMA and the 21-DMA, around 17.00 puts a floor under the Mexican Peso (MXN) pair.
However, the previous week’s downside break of an ascending trend line from July 28 joins an impending bear cross on the MACD to lure the USD/MXN pair sellers.
With this, the Mexican Peso buyers can aim for 16.80 and 16.70 levels toward the south on breaking the 17.00 hurdle. However, the latest multi-year low marked in July around 16.62 will challenge the USD/MXN pair sellers afterward.
On the contrary, the quote’s recovery remains elusive unless crossing the previous support, around 17.15 by the press time.
Following that, the monthly high of around 17.42 will act as the final defense of the USD/MXN bears.
Mexican Peso Price: Daily chart
Trend: Further downside expected
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