- USD/MXN reverses from 100-HMA hurdle to pare intraday gains.
- Bearish chart formation needs confirmation from 18.55, downbeat oscillators keep sellers hopeful.
- 200-HMA acts as additional downside filter, bulls need validation from February’s top to tighten the grips.
USD/MXN bears remain hopeful as the Mexican Peso (MXN) pair take a U-turn from the 100-Hour Moving Average (HMA) to pare intraday gains around 18.75 during early Friday.
Not only the failure to cross the 100-HMA but bearish MACD signals and downbeat RSI (14), not oversold, also favor the USD/MXN sellers.
Above all, the pair’s “double top” bearish chart pattern, by reversing twice from the 19.20 hurdle, keeps the USD/MXN sellers hopeful.
However, a clear downside break of the stated pattern’s lower end, around 18.55, becomes necessary for the bears to retake control.
Following that, the 200-HMA level of 18.45 may act as a buffer during the theoretical fall targeting the monthly low surrounding 17.90, also the lowest level since 2017.
Meanwhile, recovery moves, need to cross the 100-HMA hurdle of 18.80 to convince intraday buyers.
Even so, the previous support line from March 09, close to 18.93 at the latest, could challenge the USD/MXN pair’s run-up towards the double tops marked around 19.20.
In a case where USD/MXN crosses the 19.20 hurdle, February’s peak of 19.29 and the 20.00 psychological manget appear as the key upside levels to watch for buyers.
USD/MXN: Hourly chart
Trend: Further downside 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
AUD/USD holds steady below 0.6550 after PBOC's status quo
AUD/USD is trading in a tight range below 0.6550 in Asian trading on Wednesday. The pair lacks bullish conviction after the PBOC left the Lona Prime Rates unchanged. Escalating Russia-Ukraine geopolitical tensions keep the Aussie on the edge ahead of Fedspeak.
USD/JPY pares gains below 155.00 amid risk-off mood
USD/JPY is paring back gains below 155.00 in Wednesday's Asian session. A broadly softer US Dollar, a risk-off market mood and looming Japanese intervention risks limit the pair's upside. Mounting Russia-Ukraine tensions weigh on risk appetite, lending support to the safe-haven Japanese Yen.
Gold stays firm amid geopolitical concerns, nears $2,650
Gold price holds comfortably above $2,600, nearing $2,650 early Wednesday. Escalating geopolitical tensions on latest developments surrounding the Russia-Ukraine conflict and the pullback seen in US yields help Gold price hold its ground.
XRP on the verge of a rally to $1.96 as investors maintain bullish sentiment
Ripple's XRP trades at $1.11 on Wednesday, maintaining its position as the best-performing cryptocurrency in the top 20 cryptos by market capitalization, with over a 50% rise in the past week.
How could Trump’s Treasury Secretary selection influence Bitcoin?
Bitcoin remained upbeat above $91,000 on Tuesday, with Trump’s cabinet appointments in focus and after MicroStrategy purchases being more tokens.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.