Peso sellers attack key support around 17.20 ahead of US, Mexico data

  • USD/MXN prods 15-week-old falling resistance line after a three-day-long winning streak.
  • Monthly horizontal resistance area adds to the upside filters.
  • Mexican Peso sellers cheer sustained trading beyond 50-DMA, bullish MACD signals.
  • Rising trend line from early July acts as the last defense of Mexican Peso bulls.

USD/MXN bulls attack the key upside hurdle surrounding 17.20, close to 17.17 by the press time of early Tuesday morning in Asia.

The Mexican Peso (MXN) pair rose in the last three consecutive days before poking a downward-sloping resistance line from May 31, close to 17.20 at the latest.

The upside momentum takes clues from the bullish MACD signals and the USD/MXN pair’s ability to stay firmer past the 50-DMA, around 16.97 by the press time.

It’s worth noting, however, that a one-month-old horizontal area adds strength to the 17.18–20 hurdle for the USD/MXN bulls.

Following that, a quick run-up towards the ascending resistance line stretched from early July, surrounding 17.46 at the latest, can’t be ruled out.

On the flip side, the USD/MXN pullback remains elusive unless it stays beyond the 50-DMA support of 16.97. That said, the 17.00 round figure restricts the nearby downside of the quote.

In a case where the Mexican Peso (MXN) pair remains bearish past 16.97, a seven-week-long horizontal area surrounding 16.68–70 will be in the spotlight.

Overall, the USD/MXN pair is likely to remain firmer but the immediate resistance line and the presence of the US Factory Orders for July, as well as Mexican Consumer Confidence for August, test the pair buyers.

USD/MXN: Daily chart

Trend: Limited upside expected

 

Source: https://www.fxstreet.com/news/usd-mxn-price-analysis-peso-sellers-attack-key-support-around-1720-ahead-of-us-mexico-data-202309042337