- USD/MXN is seen oscillating in a range on Friday and consolidating its weekly gains.
- The technical setup favours bullish traders and supports prospects for additional gains.
- Any meaningful corrective slide could attract some dip-buying and remain cushioned.
The USD/MXN pair struggles to capitalize on its weekly gains registered over the past three days and seesaws between tepid gains/minor losses through the Asian session on Friday. Spot prices currently trade around the 18.3185 region, down less than 0.10% for the day, and remain well within the striking distance of a near two-week high touched on Thursday.
From a technical perspective, the USD/MXN last week bounced off the 17.7550-17.7545 confluence resistance-turned-support – comprising the 200-day Simple Moving Average (SMA) and a multi-month-old descending trend-line. The subsequent move up, along with positive oscillators on the daily chart, favours bullish traders and suggests that the path of least resistance for spot prices is to the upside.
That said, it will still be prudent to wait for some follow-through buying beyond the 18.4935 area, or the highest level since late March touched earlier this month, before placing fresh bullish bets. The USD/MXN pair might then climb further towards the 18.8145-18.8150 region, representing the 50% Fibonacci retracement level of the fall witnessed in July, which if cleared will set the stage for additional gains.
On the flip side, any corrective slide might now find decent support near the 18.1100 level. This is followed by the 18.0000 mark, below which the USD/MXN pair could retest the weekly low, around the 17.8720-17.8715 region. Some follow-through selling will expose the 200-day SMA support, currently pegged around the 17.7425 zone, before spot prices drop to the 23.6% Fibo. level, around the 17.6595-17.6590 area.
The latter coincides with the aforementioned descending trend-line resistance breakpoint and should act as a key pivotal point. A convincing break below will shift the near-term bias back in favour of bearish traders and make the USD/MXN pair vulnerable to weaken further.
USD.MXN daily chart
Technical levels to watch
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 bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.