The Mexican Peso (MXN) Pair Can Extend Its Bearish Mood
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- USD/MXN takes offers to reverse the week-start corrective bounce off multi-month low.
- Bearish MACD signals, sustained trading below 50-DMA keep sellers hopeful.
- Convergence of previous support line from November 2022, one-month-old descending trend line appears crucial hurdle towards the north.
USD/MXN bears are back to the table, following a one-day absence, as the Mexican Peso (MXN) pair drops to 17.99, down 0.10% intraday during early Tuesday in Europe.
In doing so, the currency pair reverses the previous day’s corrective bounce from the lowest levels since April 2018.
It’s worth noting that the USD/MXN pair’s latest losses take clues from the bearish MACD signals, as well as the sustained trading below the 50-DMA. Adding strength to the bearish bias could be the quote’s failure to cross the $1,810 resistance confluence during the previous day’s rebound.
That said, a downward-sloping trend line from early February and a 14-week-old descending trend line, previous support, together constitute the 18.10 resistance confluence.
Should the quote rises past the 18.10 hurdle, the pair’s run-up towards a five-week-old horizontal resistance near 18.50 can’t be ruled out. However, the USD/MXN bears remain hopeful unless the quote trades below the 50-DMA level of 18.75.
On the contrary, the latest bottom of around 17.95 and April 2018 low of 17.90 lure the USD/MXN pair sellers of late.
Following that, September 2017 low and the year 2017 trough, close to 17.60 and 17.45 in that order, may flash on the bear’s radar.
USD/MXN: Daily chart
Trend: Further downside expected
