USD/MXN Price Analysis: Mexican Peso sellers take a breather below 18.00 resistance
- USD/MXN snaps five-day uptrend by printing mild losses at two-week high.
- Upbeat oscillators, sustained break of 21-DMA favor Mexican Peso sellers.
- Seven-week-old descending trend line guards immediate upside ahead of the key DMAs.
USD/MXN bulls ease control after a five-day uptrend as the Mexican Peso (MXN) pair retreats from a 13-day-high to 17.89 amid early Tuesday.
Even so, the USD/MXN buyers remain hopeful amid a successful break of the 21-DMA, around 17.80 by the press time. Adding strength to the upside bias for the pair are the bullish MACD signals and the firmer RSI (14) line.
As a result, the USD/MXN bulls keep the reins despite the latest retreat. However, the buyers need conviction from a downward-sloping resistance line from early April, close to 18.00, to convince the pair buyers.
Following that, the 50-DMA and 100-DMA, respectively near 18.10 and 18.35, could test the USD/MXN bulls before giving them control. Above all, a downward-sloping resistance line from December 2022, close to 18.75 at the latest, becomes the key hurdle for the pair to cross to aim for the highs marked in March and February, close to 19.25 and 19.30.
On the flip side, a daily closing below the 21-DMA support of 17.80 could recall the Mexican Peso buyers who target 17.50 support.
Should the USD/MXN remains bearish past 17.50, the yearly low marked during mid-May around 17.40 can act as the last defense of the Mexican Peso sellers.
USD/MXN: Daily chart
Trend: Further upside 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.
