USD/MXN Price Analysis: Mexican Peso sellers flex muscles, 17.20 in the spotlight
- USD/MXN struggles to defend two-day winning streak ahead of Fed Minutes.
- Impending bull cross between 50-HMA and 200-HMA joins firmer RSI (14) line to favor Mexican Peso sellers.
- Pair seller need dovish remarks in FOMC Minutes, clear break of 17.00 to retake control.
USD/MXN retreats to 17.35 as bulls struggle to keep the reins amid the market’s consolidation ahead of the Federal Reserve’s (Fed) monetary policy meeting minutes. That said, the Mexican Peso (MXN) pair drops for the first day so far in three while fading the previous day’s rebound from the 200-Hour Moving Average (HMA).
It’s worth noting, however, that the 50-HMA is closing in on the 200-HMA from below and portrays a looming bull cross to lure the USD/MXN buyers.
Also suggesting the quote’s further upside is the RSI (14) line that stays sturdy beyond the 50.0 level.
Even so, the USD/MXN bulls need to cross the one-week-old falling resistance line surrounding 17.20, as well as gain support from the dovish minutes of the Federal Open Market Committee’s (FOMC) latest Monetary Policy Meeting Minutes, to retake control.
Following that, a horizontal area comprising levels marked since August 04, near 17.30, can prod the USD/MXN pair’s further upside before marking a run-up toward the monthly peak of near 17.42.
On the flip side, the 200-HMA and the 50-HMA restrict the immediate downside of the Mexican Peso pair to around 17.09-08.
In a case where the USD/MXN drops below the 17.08 support line, a convergence of an upward-sloping trend line from July 28 and the 50% Fibonacci retracement of late July to early August upside, near the 17.00 threshold, appears a tough nut to crack for the bears.
USD/MXN Price: Hourly chart
Trend: Further upside expected