Technical analysis: Mexican Peso counterattacks as USD/MXN dives below 18.00
The USD/MXN has hit a ten-day low of 17.91, yet it remains slightly above the June 24 cycle low of 17.87, which if broken could extend the Greenback’s losses. Momentum favors shorts as the Relative Strength Index (RSI) dropped below the 50-neutral line.
That said, If USD/MXN achieves a daily close below 18.00, the next support would be the June 24 swing low of 17.87. Further losses are seen beneath the 50-day Simple Moving Average (SMA) at 17.56, followed by the 200-day SMA at 17.26. The next floor level would be the 100-day SMA at 17.17.
For a bullish resumption, USD/MXN needs to surpass 18.10, followed by a rally above the June 28 high of 18.59, allowing buyers to challenge the YTD high of 18.99. Conversely, sellers will need to push the pair below 18.00, which could extend the decline toward the December 5 high-turned-support at 17.56, followed by the 50-day SMA at 17.37.
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