#USDMXN @ 18.4322 has sensed pressure after a recovery move to near 18.45. (Pivot Orderbook analysis)

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• USD/MXN has sensed pressure after a recovery move to near 18.45.
• The major looks vulnerable above 61.8% Fibo retracement at 18.40.
• A downward-sloping 50-EMA at 18.50 indicates more weakness ahead.

The pair currently trades last at 18.4322.

The previous day high was 18.7981 while the previous day low was 18.4222. The daily 38.2% Fib levels comes at 18.5658, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.6545, expected to provide resistance.

The USD/MXN pair has retreated after facing barricades around 18.45 in the Asian session. The downside bias for the asset is the outcome of a subdued performance by the US Dollar Index (DXY). The USD Index has refreshed its intraday low below 103.00 as investors are anticipating that the Federal Reserve (Fed) won’t go heavy on interest rates for now amid escalating United States recession fears.

US banks are expected to behave extremely precautionary while disbursing advances to households and businesses after the turmoil in order to justify fresh regulations. Therefore, extreme credit conditions by lenders would slow down overall economic activity and henceforth the overall demand.

Meanwhile, S&P500 futures have extended gains in the Asian session on hopes that expanded emergency lending facility to US banks will provide support to them, portraying a higher risk appetite of market participants.

USD/MXN is hovering near the 61.8% Fibonacci retracement (plotted from near March 09 low at 17.90 to March 20 high at 19.23) at 18.40. The retracement level also acted as a cushion for the pair last week. The major is consolidating below the 50-period Exponential Moving Average (EMA) at around 18.50, which indicates that the short-term bias is favoring the downside.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the bearish range of 20.00-40.00, which indicates that the bearish momentum has been activated.

Going forward, a slippage below March 22 low at 18.43 would drag the asset toward March 13 low at 18.24 followed by March 09 low at 17.90.

Alternatively, a break above March 24 high at 18.00 will expose the asset to a 23.6% Fibo retracement at 18.92 and March 20 high at 19.23.

Technical Levels: Supports and Resistances

USDMXN currently trading at 18.4379 at the time of writing. Pair opened at 18.4492 and is trading with a change of -0.06 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.4472, 50 SMA 18.5993, 100 SMA @ 19.0168 and 200 SMA @ 19.5796.

The previous day high was 18.7981 while the previous day low was 18.4222. The daily 38.2% Fib levels comes at 18.5658, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.6545, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 18.3149, 18.1806, 17.9389
• Pivot resistance is noted at 18.6908, 18.9325, 19.0668

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