USD/MXN Price Analysis: Bears in charge as broad-based US Dollar weakness weighs on the pair

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

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.