#USDMXN @ 17.9923 takes offers to reverse the week-start corrective bounce off multi-month low., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/MXN takes offers to reverse the week-start corrective bounce off multi-month low.
• Bearish MACD signals, sustained trading below 50-DMA keep sellers hopeful.
• Convergence of previous support line from November 2022, one-month-old descending trend line appears crucial hurdle towards the north.

The pair currently trades last at 17.9923.

The previous day high was 18.0394 while the previous day low was 17.9495. The daily 38.2% Fib levels comes at 18.0051, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.9839, expected to provide support.

USD/MXN bears are back to the table, following a one-day absence, as the Mexican Peso (MXN) pair drops to 17.99, down 0.10% intraday during early Tuesday in Europe.

In doing so, the currency pair reverses the previous day’s corrective bounce from the lowest levels since April 2018.

It’s worth noting that the USD/MXN pair’s latest losses take clues from the bearish MACD signals, as well as the sustained trading below the 50-DMA. Adding strength to the bearish bias could be the quote’s failure to cross the $1,810 resistance confluence during the previous day’s rebound.

That said, a downward-sloping trend line from early February and a 14-week-old descending trend line, previous support, together constitute the 18.10 resistance confluence.

Should the quote rises past the 18.10 hurdle, the pair’s run-up towards a five-week-old horizontal resistance near 18.50 can’t be ruled out. However, the USD/MXN bears remain hopeful unless the quote trades below the 50-DMA level of 18.75.

On the contrary, the latest bottom of around 17.95 and April 2018 low of 17.90 lure the USD/MXN pair sellers of late.

Following that, September 2017 low and the year 2017 trough, close to 17.60 and 17.45 in that order, may flash on the bear’s radar.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.9916 at the time of writing. Pair opened at 18.0073 and is trading with a change of -0.09% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.4356, 50 SMA 18.7851, 100 SMA @ 19.1949 and 200 SMA @ 19.6738.

The previous day high was 18.0394 while the previous day low was 17.9495. The daily 38.2% Fib levels comes at 18.0051, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.9839, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 17.9581, 17.9088, 17.8682
• Pivot resistance is noted at 18.048, 18.0887, 18.1379

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