- 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
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.
