USD/MXN Price Analysis: Mexican Peso buyers again aim for 13-day-old support
- USD/MXN braces for the first daily loss in four.
- U-turn from key SMAs, steady RSI (14) keeps Mexican Peso buyers hopeful.
- Clear downside break of fortnight-old support becomes necessary for pair bears to aim for 2017 low.
USD/MXN prints mild losses around 18.04 heading into Wednesday’s European session. In doing so, Mexican Peso (MXN) pair prints the first daily loss in four while justifying the pair’s repeated failures to cross the 50-SMA and the 100-SMA.
Not only the inability to cross the key SMAs but mostly steady RSI (14) and the lower high bearish formation, prevailing since early April, also seem to weigh on the USD/MXN price.
As a result, the pair is likely declining towards the key support line stretched from April 03, around 17.97.
However, the pair’s further downside appears limited as the lows marked in April and March, respectively near 17.93 and 17.89, can challenge the USD/MXN bears.
Should the quote remains bearish past 17.89, lows marked in June 2017 around 17.80 and the year 2017 bottom surrounding 17.44 will be in the spotlight.
On the contrary, the 50-SMA and the 100-SMA restrict the immediate upside of the USD/MXN pair to around 18.08 and 18.12 in that order.
Following that, the weekly high of 18.15 and 18.28 may act as extra checks for the Mexican Peso (MXN) sellers before directing them to the monthly peak surrounding 18.40.
If at all, the USD/MXN remains firmer past 18.40, the expectations of witnessing a run-up towards 19.00 and then to the previous monthly high near 19.23 can’t be ruled out.
USD/MXN: Four-hour chart
Trend: Further downside expected