USD/MXN continues to grind lower, maintaining a persistent downtrend that has remained intact since mid-April. The pair is currently hovering near a short-term support area just above 19.00, with little sign of bullish reversal as of now.
🔍 Technical Breakdown
Bearish Structure: Price remains below both the 50-day (19.63) and 200-day (20.02) SMAs, with both averages now pointing lower — confirming the strength of the ongoing bearish trend.
Momentum Indicators:
MACD remains firmly in negative territory with a persistent bearish histogram, suggesting downside momentum is not yet exhausted.
RSI is approaching oversold levels, currently at 34. While not yet in extreme territory, it hints that the pair may be nearing a potential short-term pause or bounce.
Support & Resistance:
Price is testing a minor support zone around 19.00, with the next significant level lower coming in near 18.58, a level last seen in early Q3 2023.
On the upside, initial resistance stands at the breakdown point near 19.49, followed by stronger resistance at the confluence of moving averages.
⚙️ Outlook
USD/MXN is trading firmly within a well-defined downtrend, marked by lower highs and lower lows. As long as price remains below the 50-day SMA, the bias remains bearish. While the RSI suggests some caution is warranted as the pair approaches oversold conditions, there is no definitive bullish divergence or reversal pattern yet.
If the current support gives way, bears could target deeper retracements. Conversely, a sustained rebound back above 19.49 would be needed to challenge the bearish structure.
-MW
🔍 Technical Breakdown
Bearish Structure: Price remains below both the 50-day (19.63) and 200-day (20.02) SMAs, with both averages now pointing lower — confirming the strength of the ongoing bearish trend.
Momentum Indicators:
MACD remains firmly in negative territory with a persistent bearish histogram, suggesting downside momentum is not yet exhausted.
RSI is approaching oversold levels, currently at 34. While not yet in extreme territory, it hints that the pair may be nearing a potential short-term pause or bounce.
Support & Resistance:
Price is testing a minor support zone around 19.00, with the next significant level lower coming in near 18.58, a level last seen in early Q3 2023.
On the upside, initial resistance stands at the breakdown point near 19.49, followed by stronger resistance at the confluence of moving averages.
⚙️ Outlook
USD/MXN is trading firmly within a well-defined downtrend, marked by lower highs and lower lows. As long as price remains below the 50-day SMA, the bias remains bearish. While the RSI suggests some caution is warranted as the pair approaches oversold conditions, there is no definitive bullish divergence or reversal pattern yet.
If the current support gives way, bears could target deeper retracements. Conversely, a sustained rebound back above 19.49 would be needed to challenge the bearish structure.
-MW
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.