- USD/MXN remains sidelined after refreshing five-week top the previous day.
- Upbeat oscillators, clear upside break of previous key resistance line keep Mexican Peso pair buyers hopeful.
- Sellers need validation from 18.65 to retake control.
USD/MXN grinds near 18.90 as bulls take a breather after a three-day rebound from the multi-month low. Even so, the Mexican Peso (MXN) pair remains on the bull’s radar as it defends the previous day’s bullish signals.
That said, a daily closing beyond a downward-sloping resistance line from late December 2022, now immediate support around 18.85, favors USD/MXN bulls. Adding strength to the upside bias is the bullish MACD signals and the firmer RSI (14) line, not overbought.
It should be noted that the USD/MXN pair failed to cross the 100-DMA hurdle, near 19.10 at the latest, during the previous day’s run-up. However, the aforementioned bullish catalysts hint at the pair’s sustained break of the key resistance.
Even so, the 61.8% Fibonacci retracement level of the pair’s December 2022 to March 2023 downside, close to 19.15, can act as an extra filter to the north. Following that, the previous monthly top surrounding 19.30 appears the last defense of the USD/MXN bears.
Meanwhile, the pair’s pullback moves appear unimpressive till staying beyond the aforementioned resistance-turned-support line near 18.85.
However, major attention should be given to a convergence of the 50-DMA and 38.2% Fibonacci retracement, near 18.65, to convince the USD/MXN bears to refresh the multi-month low marked the last week around 17.90.
USD/MXN: Daily chart
Trend: Further upside expected
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