USD/MXN Price Analysis: Mexican Peso rebound needs validation from 16.87 and US NFP

USD/MXN pares the biggest daily gain in a month but lacks downside momentum of late.
Clear upside break of triangle, sustained trading beyond the key SMA confluence favors Mexican Peso sellers.
Overbought RSI prods USD/MXN buyers ahead of US NFP.

Anil Panchal FXStreet

USD/MXN takes offers to refreshe intraday bottom surrounding 16.98, after reversing from the weekly top, as markets brace for the key US employment report for August on Friday.

USD/MXN rallied the most in a month while refreshing the weekly top on Thursday after it crossed the top line of a five-week-old symmetrical triangle. The bullish breakout also gained support from the MACD signals to renew the multi-day top. However, the nearly overbought RSI and the pre-data positioning seem to weigh on the Mexican Peso (MXN) pair of late.

Even so, a convergence of the 100-SMA and 200-SMA, around 16.94–93, appears a tough nut to crack for the USD/MXN sellers.

Following that, the stated triangle’s top line surrounding 16.87 will be in the spotlight.

Should the USD/MXN bears keep the reins past 16.87, the odds of witnessing a fall toward the rising support line stretched from late July, near 16.70, can’t be ruled out.

On the contrary, the USD/MXN pair’s recovery needs to refresh the weekly top, currently around 17.11, to convince the buyers.

Even so, the mid-August swing high of 17.20 and the previous monthly peak surrounding 17.42 could test the Mexican Peso (MXN) sellers before giving them control.

USD/MXN: Four-hour chart

Trend: Recovery expected

Additional important levels

Overview
Today last price	16.9972
Today Daily Change	-0.0463
Today Daily Change %	-0.27%
Today daily open	17.0435

Trends
Daily SMA20	16.9812
Daily SMA50	16.9738
Daily SMA100	17.314
Daily SMA200	18.076

Levels
Previous Daily High	17.115
Previous Daily Low	16.7087
Previous Weekly High	17.08
Previous Weekly Low	16.7366
Previous Monthly High	17.4274
Previous Monthly Low	16.6945
Daily Fibonacci 38.2%	16.9598
Daily Fibonacci 61.8%	16.8639
Daily Pivot Point S1	16.7964
Daily Pivot Point S2	16.5494
Daily Pivot Point S3	16.3901
Daily Pivot Point R1	17.2028
Daily Pivot Point R2	17.3621
Daily Pivot Point R3	17.6092

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 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.