- USD/MXN reverses from the 100 hourly SMA barrier to pare intraday gains.
- Bearish chart pattern needs confirmation at 18.55, bearish oscillators keep sellers hopeful.
- The 200 hourly SMA acts as an additional filter to the downside.
- The bulls need the validation of the February high.
USD/MXN bears remain hopeful as the pair turns 180 from the 100 Hours SMA to pare intraday gains around the 18.75 level at the start of Friday’s session.
Not only the failure to break above the 100-day SMA, but bearish signals from the MACD and a bearish RSI (14) not oversold, also favor USD/MXN sellers.
Above all, the bearish “double top” chart pattern in the pair reversing twice from the 19.20 hurdle is keeping USD/MXN sellers hopeful.
However, a clear break below the lower end of the pattern, around 18.55, is necessary for the bears to regain control.
Further down, the 200 hourly SMA at 18.45 can act as support during the theoretical dip targeting the monthly low around 17.90, the lowest level since 2017.
On the other hand, recovery moves need to clear the hurdle of the 100 hourly SMA at 18.80 to convince intraday buyers.
Still, the previous support line from March 9, near 18.93, could challenge USD/MXN’s move towards the double top resistance around 19.20.
Should the USD/MXN break above that level, the February high at 19.29 and the psychological magnet at 20.00 appear as the key bullish levels to watch for buyers.
USD/MXN 1 hour chart
Trend: More falls 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.
