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USD/MXN Price Analysis: Mexican Peso sellers pause below 18.00 resistance

  • USD/MXN falls back to 17.87 after hitting a two and a half week high of 17.96 yesterday.
  • Bullish oscillators and a sustained break of the 21 DMA favor sellers of the Mexican peso.
  • The seven-week downtrend line protects the immediate upside ahead of the key DMAs.

The bulls of USD/MXN loosen control after five days of bullish trend. The pair pulls back from 13-day highs reached yesterday at 17.96 to 17.87 in the early hours of Tuesday.

Still, USD/MXN buyers remain hopeful amid a successful break of the 21 DMA, around 17.80 at time of writing. The bullish signals of the MACD and the firmness of the RSI (14) reinforce the bullish bias of the pair.

As a result, USD/MXN bulls hold the reins despite the latest pullback. However, buyers need the conviction of a downward sloping resistance line from early April near 18.00 to convince buyers of the pair.

Next, the 50 and 100 DMA, respectively near 18.10 and 18.35, could test USD/MXN bulls before giving them control. Above all, a descending resistance line from December 2022, near 18.75 at the latest, becomes the key barrier that the pair must cross to target the highs marked in March and February, near 19.25 and 19.30.

On the other hand, a daily close below the 21 DMA support at 17.80 could attract the attention of Mexican Peso buyers, who are targeting 17.50 support.

Should the USD/MXN remain bearish beyond 17.50, the mid-May lows around 17.40 may act as a last defense for Mexican Peso sellers.

USD/MXN: Daily chart

Trend: Further rises are expected

USD/MXN Technical Levels


Last Price Today 17.8871
Today’s Daily Change -0.0193
Today’s Daily Change % -0.11
Today’s Daily Open 17.9064
20 Daily SMA 17.8006
SMA of 50 Daily 18.0894
SMA of 100 Daily 18.3822
SMA of 200 Daily 19.0896
Previous Daily High 17.9608
Minimum Previous Daily 17.7462
Previous Weekly High 17.7978
Previous Weekly Minimum 17.4203
Maximum Prior Monthly 18.4018
Minimum Prior Monthly 17.9329
Daily Fibonacci 38.2% 17.8789
Daily Fibonacci 61.8% 17.8282
Daily Pivot Point S1 17.7814
Daily Pivot Point S2 17.6565
Daily Pivot Point S3 17.5668
Daily Pivot Point R1 17.9961
Daily Pivot Point R2 18.0858
Daily Pivot Point R3 18.2107

Source: Fx Street

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