USD/MXN Price Analysis: Mexican Peso marks fresh losses inside short-term rising channel
- Mexican peso remains on the back foot versus the US dollar inside the one-week-old ascending trend channel.
- 200-bar SMA acts as the strong downside support, the channel’s resistance line can trigger pullback moves.
USD/MXN renews the bullish trend as taking the bids to 22.10, up 0.85%, during the early Friday. In doing so, the pair stays inside a short-term ascending trend channel on the four-hour chart.
While 22.35 and 23.00 are likely nearby upside barriers that can please the buyers going forward, the resistance line of the mentioned channel near 23.15 could trigger another round of pullback based on overbought RSI conditions.
In a case where the bulls ignore RSI, 24.00 and an ascending trend line connecting the highs marked during 2009 and 2017, around 24.20 now, can become their favorite.
On the contrary, the channel’s support close to 21.12 and 21.00 round-figure can entertain the short-term sellers.
However, the pair’s declines below 21.00 can recall a 20.00 mark with 200-bar SMA near 19.30 acting as the strong follow-on rest.
USD/MXN Forecast Chart