USD/MXN Price Analysis: Mexican Peso bears retreat from 100-SMA, 18.00 in focus
- USD/MXN prints mild losses to consolidate the biggest daily jump in three weeks.
- Failure to cross 100-SMA appears less lucrative for Mexican Peso buyers unless slipping below previous resistance line from early April.
- 200-SMA, seven-week-long ascending trend line are the key levels to follow clear directions.
USD/MXN drops to 18.05 as it pares the longest daily run-up in three weeks amid Wednesday’s sluggish morning. In doing so, the Mexican Peso (MXN) pair retreats from a one-week high after snapping a four-day downtrend the previous day.
That said, the 100-SMA hurdle of around 18.10 by the press time guards the immediate recovery of the USD/MXN pair.
However, the pair buyers remain hopeful amid the upbeat RSI (14) line unless the quote defies Tuesday’s break of a three-week-old resistance line, now immediate support near 18.00.
Even if the USD/MXN sellers manage to conquer the 18.00 resistance-turned-support, an upward-sloping support line from early March, close to 17.94 at the latest, becomes crucial for them to break.
Meanwhile, an upside break of the 100-SMA hurdle of 18.10 isn’t an open invitation to the USD/MXN bulls as the 200-SMA level of 18.30 and the monthly high surrounding 18.40 can challenge the USD/MXN bulls afterward.
In a case where the Mexican Peso bears keep the reins past 18.40, the late March swing high of around 18.80 and the 19.00 round figure could lure the traders.
USD/MXN: Four-hour chart
Trend: Limited downside expected