USD/MXN technical analysis: Surges to the highest level since early-Jan., bulls to take breather amid overbought conditions

Haresh Menghani FXStreet

• The Mexican peso was battered after the US President Donald Trump announced new tariffs on Mexico and pushed the USD/MXN cross to its highest level since early-Jan.

• A sustained move beyond a short-term descending trend-line, coinciding with 23.6% Fibo. level of the 20.6571-18.7472 downfall was seen as a key trigger for technical traders.

Given the bullish breakout, a subsequent move beyond the very important 200-day SMA and 38.2% Fibo. level sets the stage for an extension of the strong positive momentum towards testing 50% Fibo. level hurdle near the 19.7010-15 region.

A follow-through buying might assist the cross to climb further towards reclaiming the key 20.00 psychological mark, albeit overbought conditions on hourly/daily charts warrant some caution before positioning aggressively for any further bullish move.

On the flip side, 38.2% Fibo. level, around the 19.4700 level now seems to protect the immediate downside and is followed by 200-DMA, around the 19.3335 region, which if broken might prompt some long-unwinding trade and accelerate the corrective slide.

USD/MXN daily chart

USD/MXN

Overview
Today last price	19.5953
Today Daily Change	0.4534
Today Daily Change %	2.37
Today daily open	19.1419

Trends
Daily SMA20	19.0886
Daily SMA50	19.0441
Daily SMA100	19.104
Daily SMA200	19.3446

Levels
Previous Daily High	19.1693
Previous Daily Low	19.0394
Previous Weekly High	19.169
Previous Weekly Low	18.9343
Previous Monthly High	19.4285
Previous Monthly Low	18.7448
Daily Fibonacci 38.2%	19.1197
Daily Fibonacci 61.8%	19.089
Daily Pivot Point S1	19.0645
Daily Pivot Point S2	18.9871
Daily Pivot Point S3	18.9347
Daily Pivot Point R1	19.1943
Daily Pivot Point R2	19.2467
Daily Pivot Point R3	19.3241

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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