Technical analysis: Mexican Peso counterattacks as USD/MXN slides below 17.60
The USD/MXN shifts to neutral bias despite posting losses close to 1.80% on Wednesday. However, Monday’s Japanese Marabuzo candlestick suggests that buyers are in charge and that the exotic pair might head back to levels below the already broken 200-day Displaced Moving Average (DMA) near 17.16.
The USD/MXN’s first resistance level would be the June 3 high at 17.74, followed by the 18.00 psychological level. Once surpassed, the next stop would be the year-to-date high of 18.19.
Momentum favors further upside as the Relative Strength Index (RSI) sits at the higher end of the graph. But RSI’s exiting from overbought conditions opened the door for a pullback toward the current day’s low of 17.48.
In the event of further losses, the next support would be the 200-DMA at 17.16, followed by the 17.00 figure, ahead of the 100-day DMA at 16.91. Once cleared, up next would be the 50-day DMA at 16.84.
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