Over the last five trading sessions, USD/MXN fluctuations have shown a variation of barely 1%, indicating the emergence of sustained neutrality in the pair's recent moves. For now, the slight bearish bias in USD/MXN has managed to maintain a steady downward trend, as the Mexican peso benefits from short-term weakness in the U.S. dollar—as shown by the DXY index, which continues to trade below the 100-point mark, highlighting persistent weakness in the U.S. currency.
Potential Downtrend:
Since early April, bearish moves have begun to form a steady downtrend, bringing the price close to the 19 pesos per dollar level. So far, no significant bullish correction has reversed the current selling trend. However, it is important to note that the recent neutral tone could undermine the bearish bias of the past few months. If this neutrality continues, it could give way to a new phase of prolonged sideways trading in the short term.
MACD:
The MACD histogram has been hovering around the 0 line for several sessions, indicating that the moving averages are in a neutral zone, with no clear bullish or bearish dominance. If this pattern persists, the current neutrality could lead to a more defined consolidation range.
RSI:
The RSI line has started forming higher lows while USD/MXN prices have marked lower lows—resulting in a bullish divergence. This could signal room for potential upward corrections in the short term.
Key Levels to Watch:
Written by Julian Pineda, CFA – Market Analyst
Potential Downtrend:
Since early April, bearish moves have begun to form a steady downtrend, bringing the price close to the 19 pesos per dollar level. So far, no significant bullish correction has reversed the current selling trend. However, it is important to note that the recent neutral tone could undermine the bearish bias of the past few months. If this neutrality continues, it could give way to a new phase of prolonged sideways trading in the short term.
MACD:
The MACD histogram has been hovering around the 0 line for several sessions, indicating that the moving averages are in a neutral zone, with no clear bullish or bearish dominance. If this pattern persists, the current neutrality could lead to a more defined consolidation range.
RSI:
The RSI line has started forming higher lows while USD/MXN prices have marked lower lows—resulting in a bullish divergence. This could signal room for potential upward corrections in the short term.
Key Levels to Watch:
- 19.24 pesos per dollar: A current barrier where price action has shown strong neutrality; it could serve as a starting point for potential short-term bullish corrections.
- 19.70 pesos per dollar: A critical resistance at the highest level the pair has reached in recent weeks. Sustained bullish movement near this zone could mark the end of the prevailing downtrend.
- 19.00 pesos per dollar: A significant psychological support. Continued bearish moves approaching this level could revive the forgotten bearish sentiment and strengthen the current downtrend line.
Written by Julian Pineda, CFA – Market Analyst
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.