Rises to near 17.25 followed by the 38.2% Fibonacci retracement

• USD/MXN could find resistance around the 38.2% Fibonacci retracement at 17.43.
• MACD indicates a shift towards bullish momentum for the pair.
• The 21-day EMA at 17.04 aligned with the psychological level at 17.00 could act as a key support region.

USD/MXN continues to gain ground for the third consecutive session on Wednesday, trading higher around 17.25 during the European session followed by the immediate resistance level around the 38.2% Fibonacci retracement at 17.43.

The 14-day Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements is positioned above the 50 mark, indicating the bullish momentum for the USD/MXN pair.

Additionally, Additionally, the lagging indicator “Moving Average Convergence Divergence (MACD)” lies below the centerline but shows divergence above the signal line, which suggests a potential shift in momentum towards an upward trend.

A breakthrough above the Fibonacci retracement level could influence the USD/MXN pair to test the major level at 17.50 aligned with December’s high at 17.56. if the pair surpasses the latter, it could explore the psychological region around the 18.00 level.

On the downside, the 21-day Exponential Moving Average (EMA) at 17.04 could act as a key support level in conjunction with psychological support at 17.00. A break below the latter could influence the bears of the USD/MXN pair to revisit the weekly low at 16.84 level.

USD/MXN: Daily Chart