USD/MXN Price Analysis: Hovers below 17.7200 psychological level with a positive bias

USD/MXN trades higher due to the Fed's hawkish stance on interest rate trajectory.
Momentum indicators suggest a potential bullish sentiment in the price dynamics.
The major level at 17.7200 emerges as the immediate barrier.

Akhtar Faruqui FXStreet

USD/MXN continues the gains on the second successive day, trading higher around 17.7150 aligned with the 17.7200 psychological level during the Asian session on Tuesday.

A break above the latter could open the doors for the pair to explore the region around 17.8000 major level, following September’s high at 17.8174.

This upward movement is attributed to the US Dollar (USD) benefiting from the market caution surrounding the US Federal Reserve’s (Fed) interest rates trajectory.

On the downside, the 23.6% Fibonacci retracement at 17.6243 appears to be the key support, following the 38.2% Fibonacci retracement at 17.5049 level.

A firm break below the level could push the USD/MXN pair to navigate the 14-day Exponential Moving Average (EMA) at 17.4347 lined up with the 17.4000 major level.

The current upward momentum in the pair suggests a bullish bias, given that the 14-day Relative Strength Index (RSI) remains above the 50 levels.

The Moving Average Convergence Divergence (MACD) indicator is providing a strong signal for the Dollar bulls. The MACD line lies above the centerline and the signal line. This configuration suggests that there is potentially strong momentum in the USD/MXN's price movement.

USD/MXN: Daily Chart

USD/MXN: additional important levels

Overview
Today last price	17.7194
Today Daily Change	0.0460
Today Daily Change %	0.26
Today daily open	17.6734

Trends
Daily SMA20	17.3511
Daily SMA50	17.125
Daily SMA100	17.1908
Daily SMA200	17.8307

Levels
Previous Daily High	17.7186
Previous Daily Low	17.3786
Previous Weekly High	17.8174
Previous Weekly Low	17.1723
Previous Monthly High	17.8174
Previous Monthly Low	16.9727
Daily Fibonacci 38.2%	17.5887
Daily Fibonacci 61.8%	17.5085
Daily Pivot Point S1	17.4618
Daily Pivot Point S2	17.2501
Daily Pivot Point S3	17.1217
Daily Pivot Point R1	17.8019
Daily Pivot Point R2	17.9303
Daily Pivot Point R3	18.142

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.