#USDMXN @ 18.1038 picks up bids to extend the previous day’s recovery from three-week low., @nehcap view: Further upside expected

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• USD/MXN picks up bids to extend the previous day’s recovery from three-week low.
• Upbeat oscillators, sustained break of 100-HMA and one-week-old descending trend line favor Mexican Peso sellers.
• Three-day-old horizontal resistance challenges USD/MXN bulls ahead of 200-HMA.

USD/MXN holds onto the week-start recovery from a multi-day low as it renews intraday top around 18.10 during early Tuesday. In doing so, the Mexican Peso (MXN) pair extends the previous day’s rebound from a one-week-old resistance-turned-support, as well as an upside break of the 100-Hour Moving Average (HMA).

Given the bullish MACD signals and firmer RSI (14), not overbought, the USD/MXN is likely to extend the latest run-up while justifying Monday’s bullish breakout of the 100-HMA and U-turn from the previous key resistance line.

However, a horizontal line comprising multiple hurdles marked since the last Thursday, near 18.15, appears a tough nut to crack for the USD/MXN buyers.

In a case where the Mexican Peso sellers dominate past 18.15, the 200-HMA resistance surrounding 18.28 can act as the last defense of the USD/MXN bears.

Meanwhile, pullback moves need validation from the 100-HMA support of 18.08 to convince intraday USD/MXN sellers.

Following that, the aforementioned resistance-turned-support of around the 18.00 round figure will be in the spotlight.

Should the USD/MXN manage to keep the reins past 18.00, the latest multi-month low surrounding 17.96 may check the bears before directing them towards the April 2018 bottom of near 17.93.

Trend: Further upside expected

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