USD/MXN Price Analysis: Bears are in control below key 18.10 resistance

  • USD/MXN finds new selling to reverse the corrective bounce started the day before from the multi-month low.
  • Bearish signals from the MACD and a sustained move below the 50-day SMA keep sellers on their toes.
  • The convergence of the previous support line from November 2022 and the month-old downtrend line looks like a crucial hurdle to the upside.

USD/MXN bears are back in the game, after a day’s absence, as the pair falls to 17.99, shedding 0.10% intraday, at the start of the European session on Tuesday.

In this way, the pair reverses the corrective bounce of the previous day from the lowest levels since April 2018.

It is worth noting that the latest USD/MXN losses come on bearish signals from the MACD, as well as sustained trading below the 50-day SMA. Adding strength to the downside bias could be the failure to break above the confluence of resistance at 18.10 during the previous day’s bounce.

That being said, a downtrend line from early February and a downtrend line from 14 weeks ago, previous support, make up the confluence of resistance at 18.10.

Should the pair break above the 18.10 barrier, a move towards five-week-old horizontal resistance near 18.50 cannot be ruled out. However, USD/MXN bears remain hopeful unless the pair rises to the 50-day SMA at 18.75.

On the other hand, the latest low around 17.95 and the April 2018 low of 17.90 attract USD/MXN sellers.

Further down, the September 2017 low and 2017 low, near 17.60 and 17.45 respectively, may be targets on the bears’ radar.

USD/MXN daily chart

USDMXN

Trend: More falls are expected

USD/MXN additional technical levels

Overview
Last price today 17.9916
Today Daily Variation -0.0157
today’s daily variation -0.09%
today’s daily opening 18.0073
Trends
daily SMA20 18.4356
daily SMA50 18.7851
daily SMA100 19.1949
daily SMA200 19.6738
levels
previous daily high 18.0394
previous daily low 17.9495
Previous Weekly High 18.4235
previous weekly low 17.9541
Previous Monthly High 19.2901
Previous monthly minimum 18.2954
Fibonacci daily 38.2 18.0051
Fibonacci 61.8% daily 17.9839
Daily Pivot Point S1 17.9581
Daily Pivot Point S2 17.9088
Daily Pivot Point S3 17.8682
Daily Pivot Point R1 18,048
Daily Pivot Point R2 18.0887
Daily Pivot Point R3 18.1379

Source: Fx Street

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