USD/MXN Price Analysis: Doji prods bears at three-week low around 18.00

USD/MXN portrays corrective after refreshing multi-day bottom, sidelined of late.
Bearish MACD signals, sustained trading below key DMA, resistance line favor sellers.
Nearly oversold RSI, Doji candlestick on daily challenges Mexican Peso pair’s further downside.

Anil Panchal FXStreet

USD/MXN licks its wounds near 18.10, after refreshing the three-week low, during early Friday. In doing so, the Mexican Peso pair probes the five-day losing streak after posting a trend reversal suggesting a candlestick, namely Doji, the previous day.

Not only Thursday’s Doji but nearly oversold RSI (14) also suggests the Mexican Peso pair’s recovery.

However, bearish MACD signals and the quote’s sustained trading below the 21-DMA, as well as a fortnight-long descending trend line, keeps sellers hopeful.

As a result, the quote’s latest rebound remains elusive unless it crosses the downward-sloping resistance line from March 20, close to 18.30 by the press time. Even so, the 21-DMA hurdle of 18.43 may test the USD/MXN bulls.

In a case where the USD/MXN pair rises past 18.43, multiple stops around 18.55 and the previous Friday’s peak surrounding 18.80 can challenge the bulls ahead of directing them to the 19.00 threshold. Following that, the monthly of near 19.25 will be in focus.

Alternatively, USD/MXN pair’s fresh downside needs validation from the previous day’s low of 18.04, as well as the 18.00 round figure, to convince sellers.

Though, the monthly low of 17.89 and a downward-sloping support line from late November 2022, around 17.63 at the latest, could challenge the USD/MXN bears afterward.

USD/MXN: Daily chart

Trend: Limited recovery expected

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.