- USD/MXN retreats from weekly top marked the previous day, mildly offered of late.
- Upside break of one-week-old falling trend line join bullish MACD signals to prod pair sellers.
- Mexican Peso remains firmer unless defying 10-week-old trend channel by breaking 17.22 mark.
USD/MXN bulls take a breather around 16.88 amid early Friday morning in Europe, after rising the most in two weeks. In doing so, the Mexican Peso (MXN) pair cheered the upside beak of a one-week-old descending trend line, as well as the bullish MACD signals.
However, a convergence of the previous support line from mid-June and the 100-bar Exponential Moving Average (EMA), around 16.95 at the latest, restricts the immediate recovery of the USD/MXN pair.
Above all, USD/MXN buyers remain off the table unless posting a successful upside break of the 10-week-old bearish channel’s top line, close to 17.22 at the latest.
Even so, the monthly high of 17.40 will act as the last defense of the USD/MXN bears.
On the flip side, the previous resistance line from July 13, close to 16.80, limits immediate USD/MXN downside during a fresh pullback.
Following that, a one-week-old horizontal support zone and bottom line of the stated channel, respectively near 16.70 and 16.65, will be crucial to watch for clear directions.
Should the Mexican Peso fail to recover from 16.65, the odds of witnessing a slump toward the October 2015 low of 16.32 can’t be ruled out.
USD/MXN: Four-hour chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD flirts with 1.0500 on mixed US PMI readings
The bullish momentum remains unchanged around EUR/USD on Friday as the pair keeps its trade close to the area of multi-week highs around the 1.0500 barrier in the wake of the release of mixed results from the preliminary US Manufacturing and Services PMIs for the current month.
GBP/USD challenges recent peaks near 1.2450
GBP/USD pushes harder and puts the area of recent two-week highs near 1.2450 to the test on the back of the intense sell-off in the Greenback, while the British pound also derives extra strength from earluer auspicious prints from advanced UK Manufacturing and Services PMIs.
Gold keeps the bid bias near its all-time high
Gold prices maintain the bid tone near their record top at the end of the week, helped by the intense weakness around the US Dollar, alleviating concerns surrounding Trump's tariff narrarive, and a somewhat more flexible stance towards China.
Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit
Dogelon Mars (ELON) price continues its rally on Friday after rallying more than 18% this week. On-chain data shows that ELON whale wallets realized profits during the recent surge. The technical outlook suggests a rally continuation of the dog-theme meme coin, targeting double-digit gains ahead.
ECB and US Fed not yet at finish line
Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.