- USD/MXN moves higher to extend the previous day’s rebound from the 50-day SMA.
- The 11-week-old downtrend line challenges buyers of the pair.
- The 100-day SMA and the double top around 19.20 also challenge the move higher.
- Technical oscillators support bulls despite multiple hurdles testing the move higher.
USD/MXN is trading near the 19.00 level as bulls touch the key resistance line early on Monday. As such, the USD/MXN is holding firm for the second day in a row as it extends the previous day’s rebound from the 50-day SMA.
In addition to the pair’s recovery from the SMA 50, bullish signals from the MACD and bullish, not overbought RSI (14) also favor USD/MXN buyers.
However, a clear break above the indicated resistance line, near 19.00, is necessary for USD/MXN bulls to maintain control.
Higher up, the 61.8% Fibonacci retracement of the pair’s December 2022 to March 2023 retracement near 19.15 will precede the double top around 19.20 to challenge buyers.
Also, the previous monthly high around 19.30 will act as an additional filter to the upside.
On the other hand, a pullback to the downside remains elusive as long as the USD/MXN price remains above the 50 SMA support near 18.60.
Even if the pair falls below that level, the late February high near 18.50 may act as support before steering bears towards the multi-month low hit in early March near 17.90.
Overall, USD/MXN is likely to rally, but the road higher looks long and bumpy.
USD/MXN daily chart
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