USD/MXN technical analysis: 100/200 DMAs restrict immediate moves, RSI favors pullback

Important moving averages to limit near-term momentum after the latest downpour.
RSI pattern favors bears but broad triangle formation can keep prices under check.

Anil Panchal FXStreet

Following its gap down opening on Monday, which dragged the quote beneath 200-day SMA, the USD/MXN bounced off 100-day simple moving average (SMA) and is currently trading between the same region as it clocks 19.2203 ahead of the European session open on Tuesday.

While 100-day SMA level of 19.1418 and 19.3634 mark comprising 200-day SMA seem restricting the pair’s immediate momentum, 14-day relative strength index (RSI) is gradually declining from the overbought area favors price pullback.

In addition to 19.1418, 61.8% Fibonacci retracement of its April – June 2018 rally at 19.0912 acts as an extra buffer to the pair’s slump to May month low around 18.9343.

Alternatively, 50% Fibonacci retracement level of 19.4471 and March month top surrounding 19.6225 seem buyers’ landmarks past-19.3634.

It should also be noted that a year-long symmetrical triangle formation may confine the pair’s wild moves over/beneath aforementioned levels.

USD/MXN daily chart

Trend: Sideways

Additional important levels

Overview
Today last price	19.2203
Today Daily Change	0.0062
Today Daily Change %	0.03%
Today daily open	19.2141

Trends
Daily SMA20	19.2619
Daily SMA50	19.0953
Daily SMA100	19.1415
Daily SMA200	19.3644

Levels
Previous Daily High	19.3289
Previous Daily Low	19.136
Previous Weekly High	19.8799
Previous Weekly Low	19.4667
Previous Monthly High	19.8284
Previous Monthly Low	18.7907
Daily Fibonacci 38.2%	19.2097
Daily Fibonacci 61.8%	19.2552
Daily Pivot Point S1	19.1238
Daily Pivot Point S2	19.0334
Daily Pivot Point S3	18.9309
Daily Pivot Point R1	19.3167
Daily Pivot Point R2	19.4192
Daily Pivot Point R3	19.5096

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.

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