- USD/MXN struggles for clear direction after recording another failure to cross the 100 DMA, 5.5-month resistance line.
- Bullish signals from the MACD and sustained trading beyond the two-month horizontal support keep buyers hopeful.
- The July 2022 descending resistance line and the 200 DMA act as additional bullish filters to boost buyers of the Mexican peso pair.
USD/MXN hovers around 19.00/05 in the European session on Thursday after retesting yesterday’s two-day highs at 19.09, and after failing to cross the confluence of resistance at 19.10.
It is worth noting that the state of risk aversion lifted USD/MXN the day before, but it failed to cross the convergence of the 100 DMA and a bearish resistance line from late September 2022 around 19.10.
The corrective pullback, however, remains elusive amid the bullish signals from the MACD. USD/MXN bears are also likely to be challenged by a two-month-old horizontal support zone around 18.50-55.
If the price falls below 18.50the round figure of 18.00 could test bears before leading them to a multi-month low marked in early March around 17.90.
Alternatively, a clear breakout of the barrier 19.10 is not an open invitation to USD/MXN bulls, as a bearish resistance line since mid-July 2022, around 19.48precedes the DMA level of 200 in 19.63 to challenge the bullish momentum.
Even if USD/MXN buyers manage to hold the reins beyond 19.63, the late 2022 high around 19.90 and the psychological magnet at 20.00 could test the pair’s further advances.
Overall, the USD/MXN is likely to pare some of the latest gains, but the bears are far from in control.
USD/MXN: Daily chart
Trend: Further rises are expected
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
