#USDMXN @ 18.7521 A volatile session is expected with the FOMC meeting. (Pivot Orderbook analysis)

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• A volatile session is expected with the FOMC meeting.
• USD/MXN continues to consolidate near 18.75, below the 20-day SMA.
• A break above 18.90 could trigger more gains for the US Dollar.

The pair currently trades last at 18.7521.

The previous day high was 18.8504 while the previous day low was 18.7296. The daily 38.2% Fib levels comes at 18.8043, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.7758, expected to provide resistance.

The USD/MXN is falling on Wednesday, following the release of US economic data and ahead of the Federal Reserve decision. A 25 basis points rate hike is priced in and the key diver for action would be the outlook presented in the statement and in Powell’s comments. Volatile hours are expected across the FX board.

The daily chart shows the bias in USD/MXN is still to the downside, although losses continue to be limited by 18.75 and technical indicators do not offer clear signs with RSI flat and Momentum approaching 0 from the downside but about to turn south again. A consolidation below the 18.75 area should open the doors to a bearish extension targeting 18.62 initially. The next support is located at 18.55.

Hours ago, the USD/MXN peaked at 18.86, slightly below the 20-day Simple Moving Average, today at 18.88. The area around 18.90 has become a critical short-term resistance area. If the US dollar breaks and holds above, a recovery to 19.00 and more, seems likely. The next resistance stands at 19.10.

Technical Levels: Supports and Resistances

USDMXN currently trading at 18.7629 at the time of writing. Pair opened at 18.83 and is trading with a change of -0.36 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.9201, 50 SMA 19.2847, 100 SMA @ 19.5706 and 200 SMA @ 19.8639.

The previous day high was 18.8504 while the previous day low was 18.7296. The daily 38.2% Fib levels comes at 18.8043, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.7758, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 18.7563, 18.6825, 18.6355
• Pivot resistance is noted at 18.8771, 18.9242, 18.998

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