USD/MXN Nears Critical Support Level
Over the past four trading sessions, USD/MXN has declined by more than 2% in favor of the Mexican peso. The current bearish move has brought the price closer to the lower boundary of the existing sideways range seen on the chart.
This recent selling pressure has been driven by mixed U.S. inflation data released last week and the lack of volatility in the U.S. dollar due to the U.S. holiday, allowing the peso to dominate the market in the short term.
Sideways Range Holds
At the moment, USD/MXN continues to trade within a well-defined neutral range between the 20.90332 resistance level and the 20.09472 support level.
So far, the bearish momentum has been strong enough to push the price closer to the key support zone, and as long as selling pressure persists, there is a higher likelihood of a downside breakout in the short term.
MACD Indicator
Currently, both the MACD lines and the histogram are crossing the neutral 0 level.
This could signal the start of fresh bearish strength if price action remains below this level in the coming sessions.
Selling pressure may gain further relevance as the histogram moves further away from the neutral zone.
TRIX Indicator
For the first time in months, the TRIX indicator is consistently approaching the 0 neutral level, reinforcing bearish dominance in the short term.
If the TRIX crosses below 0, the moving average bias could shift fully bearish, strengthening the peso’s momentum.
Key Levels to Watch
20.90332 – Key Resistance:
Major resistance level, marking the highest price levels reached in recent months.
A return to this level would confirm a recovery of bullish sentiment, reinforcing the current sideways channel.
20.43791 – Near-Term Resistance:
Coincides with the Ichimoku Cloud barrier and the 50-period moving average.
If the price retraces to this level, it could invalidate the current bearish pressure and open the door for a potential upside correction.
20.09472 – Critical Support:
Lower boundary of the current range.
If sellers break below this level, it could confirm the start of a new downtrend in the short term.
By Julian Pineda, CFA – Market Analyst
This recent selling pressure has been driven by mixed U.S. inflation data released last week and the lack of volatility in the U.S. dollar due to the U.S. holiday, allowing the peso to dominate the market in the short term.
Sideways Range Holds
At the moment, USD/MXN continues to trade within a well-defined neutral range between the 20.90332 resistance level and the 20.09472 support level.
So far, the bearish momentum has been strong enough to push the price closer to the key support zone, and as long as selling pressure persists, there is a higher likelihood of a downside breakout in the short term.
MACD Indicator
Currently, both the MACD lines and the histogram are crossing the neutral 0 level.
This could signal the start of fresh bearish strength if price action remains below this level in the coming sessions.
Selling pressure may gain further relevance as the histogram moves further away from the neutral zone.
TRIX Indicator
For the first time in months, the TRIX indicator is consistently approaching the 0 neutral level, reinforcing bearish dominance in the short term.
If the TRIX crosses below 0, the moving average bias could shift fully bearish, strengthening the peso’s momentum.
Key Levels to Watch
20.90332 – Key Resistance:
Major resistance level, marking the highest price levels reached in recent months.
A return to this level would confirm a recovery of bullish sentiment, reinforcing the current sideways channel.
20.43791 – Near-Term Resistance:
Coincides with the Ichimoku Cloud barrier and the 50-period moving average.
If the price retraces to this level, it could invalidate the current bearish pressure and open the door for a potential upside correction.
20.09472 – Critical Support:
Lower boundary of the current range.
If sellers break below this level, it could confirm the start of a new downtrend in the short term.
By Julian Pineda, CFA – Market Analyst
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Wyłączenie odpowiedzialności
Informacje i publikacje przygotowane przez TradingView lub jego użytkowników, prezentowane na tej stronie, nie stanowią rekomendacji ani porad handlowych, inwestycyjnych i finansowych i nie powinny być w ten sposób traktowane ani wykorzystywane. Więcej informacji na ten temat znajdziesz w naszym Regulaminie.