#USDMXN @ 18.1117 struggles to extend two-day rebound from multi-month low, sidelined of late., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/MXN struggles to extend two-day rebound from multi-month low, sidelined of late.
• Failure to cross 50-EMA, one-month-old falling trend line recalls bears.
• One-week-long horizontal support area can restrict immediate downside.

The pair currently trades last at 18.1117.

The previous day high was 18.1793 while the previous day low was 17.9686. The daily 38.2% Fib levels comes at 18.0988, expected to provide support. Similarly, the daily 61.8% fib level is at 18.0491, expected to provide support.

USD/MXN retreats from intraday high, snapping a two-day uptrend, as it drops to 18.10 heading into Wednesday’s European session. In doing so, the Mexican Peso (MXN) pair fades the early-week rebound from the lowest levels since April 2018.

USD/MXN rose the most in more than a month the previous day on crossing the one-week-old horizontal resistance area surrounding 18.03-07. The recovery moves also surpass a downward-sloping trend line from February 06.

However, failure to cross a convergence of the one-month-long descending resistance line and 50-bar Exponential Moving Average (EMA), around 18.15-16 by the press time, recalled the USD/MXN bears.

Even so, the previous support line from early February, around 18.10 restricts the quote’s immediate downside ahead of the resistance-turned-support zone near 18.07-03.

Following that, the 18.00 round figure could prod the USD/MXN bears before directing them to the recently flashed multi-month low of 17.94.

On the contrary, a clear upside break of the 18.15-16 resistance confluence becomes necessary for the USD/MXN bulls to take entries.

Though, the Mexican Peso pair buyers remain off the table unless witnessing a clear upside break of the one-month-old horizontal resistance, around 18.50.

Overall, USD/MXN is likely to remain depressed even as the buyers managed to keep the reins in the last two days.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 18.1163 at the time of writing. Pair opened at 18.116 and is trading with a change of 0.00% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.3969, 50 SMA 18.7578, 100 SMA @ 19.1758 and 200 SMA @ 19.666.

The previous day high was 18.1793 while the previous day low was 17.9686. The daily 38.2% Fib levels comes at 18.0988, expected to provide support. Similarly, the daily 61.8% fib level is at 18.0491, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 17.9966, 17.8772, 17.7858
• Pivot resistance is noted at 18.2074, 18.2987, 18.4181

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