- USD/MXN marches lower, approaching a multi-year low at 17.93.
- Limited upside momentum for USD/MXN as Fed signals a pause.
- Relative Strength Index signals further downside for USD/MXN.
The USD/MXN experienced a multi-month corrective decline, bringing the price down to 18.40. The pair has been consistently heading lower after reaching a March high of 19.23, which intersects with the descending trendline starting from July’s high at around 21.00 on a daily timeframe.
Keeping downside bias intact, the pair is likely to be moving towards retesting the multi-year low at 17.93. The Federal Reserve (Fed) signaled a pause in their rate hiking path, combined with ongoing US Dollar liquidity injections and easing banking adversity, which could push the pair to break below the critical 17.93 mark.
Any upside momentum will likely be limited around the 21-Day Moving Average (DMA), which currently coincides with Monday's high at 18.44. A break above this level would lead the USD/MXN to face the 50 DMA, which aligns with multi-tested support turned into resistance at 18.57.
Both DMA levels hammer the pair, and breaking above them would require significant bullish US dollar momentum to retest the March high at 19.23.
The Relative Strength Index signals lower lows, suggesting further downside potential for the pair.
Market participants focus on the upcoming US Personal Consumption Expenditure (PCE) data release on Friday and the Banxico interest rate decision on Thursday.
USD/MXN: Daily chart
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0800 on broad US Dollar's weakness
EUR/USD trades near 1.0830 in the mid-European session. The EUR advances despite the German IFO - Business Climate improving less than expected in March. Comments from US President Donald Trump take their toll on financial markets ahead of US Consumer Confidence data.
GBP/USD trades around 1.2950 with eyes on tariffs, geopolitics
GBP/USD trades with a firmer tone around 1.2950 in the European session on Tuesday. The pair surged as the US Dollar suffered a setback following fresh tariff-related headlines, while keeping an eye on a potential peace deal between Russia and Ukraine. US data and Fedspeak take centre stage in the upcoming American session.
Gold price trades with modest gains above $3,000; positive risk tone could cap gains
Gold price edges higher and snaps a three-day losing streak amid a softer USD. Bets that the Fed will resume its rate-cutting cycle soon also support the bullion. Traders now look to Tuesday’s US macro data and Fed speak for a fresh impetus.
Bitcoin stabilizes around $87,000 as it displays a classic beta response to traditional markets
Bitcoin stabilizes around $87,000 on Tuesday after extending a recovery over the past two days. A Crypto Finance report highlights that the crypto market followed the broader risk momentum, displaying a classic beta response to traditional markets.
Seven Fundamentals for the Week: Tariff news, fresh surveys, the Fed's preferred inflation gauge are eyed Premium
Reports and rumors ahead of Trump’s reciprocal tariffs announcement next week will continue moving markets. Business and consumer surveys will try to gauge where the US economy is heading. Core PCE, the Fed's preferred inflation gauge, is eyed late in the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.