- USD/MXN picks up bids to extend the previous day’s recovery from December 2015 lows.
- Convergence of weekly falling trend line, 100-HMA restricts immediate upside of Mexican Peso pair.
- Near 50.0 RSI line, sluggish MACD signals keep Mexican Peso buyers to keep the reins.
USD/MXN remains on the front foot, clings to mild gains of late, as it pierces the 17.00 round figure during early Tuesday in Asia, up 0.07% on a day near 17.10 by the press time.
In doing so, the Mexican Peso (MXN) pair extends the previous day’s recovery from the lowest levels since December 2015 amid steady RSI (14) and sluggish MACD signals.
Although the oscillators suggest a continuation of the corrective bounce, the USD/MXN pair’s downside break of an upward-sloping support line from Friday, now immediate resistance near 17.12, prods the bulls.
Even if the Mexican Peso (MXN) pair rises past 17.12, a convergence of the 100-Hour Moving Average (HMA) and descending resistance line from June 08, close to 17.14, appears a tough nut to crack for the short-term USD/MXN buyers.
Following that, the quote may approach the previous monthly low of around 17.42 which holds the key for the USD/MXN bull run.
Meanwhile, the 17.00 psychological magnet puts a floor under the USD/MXN price, a break of which could direct the MXN buyers toward the mid-December 2015 low of around 16.89.
It’s worth noting that the multiple levels marked in 2015 together highlight 16.40-38 zone as the key support to watch for the USD/MXN bears past 16.89.
Overall, the USD/MXN pair is likely to remain bearish but a short-term recovery can’t be ruled out in a case where it manages to cross the 17.14 resistance confluence.
USD/MXN Price: Hourly chart
Trend: Limited recovery expected
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