The USDMXN exchange rate has recorded its first daily increase in three, recovering from its lowest level since 2016. However, according to the viewpoint of @nehcap, a decline is anticipated.

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• USD/MXN prints the first daily gains in three, bounces off the lowest levels since 2016.

The pair currently trades last at 17.1894.

The previous day high was 17.2471 while the previous day low was 17.0789. The daily 38.2% Fib levels comes at 17.1431, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1829, expected to provide support.

USD/MXN grinds near intraday high of around 17.20 as it prod the 50-Hour Moving Average (HMA) during the first positive day in three on early Thursday. In doing so, the Mexican Peso (MXN) pair defends the late Wednesday’s rebound from the lowest levels since 2016.

That said, a clear break of the previous resistance line stretched from Tuesday joins bullish MACD signals and upbeat RSI (14) line, not overbought, to keep the USD/MXN bulls hopeful.

However, multiple hurdles toward the north keep challenging the pair’s upside momentum.

Among them, the 50-HMA level of around 17.21 guards immediate recovery ahead of a one-week-old downward-sloping resistance line, around 17.25 by the press time.

Following that, the 100-HMA and the 200-HMA, respectively near 17.26 and 17.35 in that order, will challenge the USD/MXN bulls before giving control to them.

On the flip side, a clear break of the resistance-turned-support line, near 17.16 by the press time, becomes necessary to convince USD/MXN sellers.

Following that, the bears may easily conquer the latest trough of 17.07 in search of poking the 17.00 psychological magnet.

It should be noted that the year 2016 bottom of around 17.05 acts as an extra filter toward the south.

Trend: Pullback expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.2092 at the time of writing. Pair opened at 17.1068 and is trading with a change of 0.60% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 17.5604, 50 SMA 17.7747, 100 SMA @ 18.1337 and 200 SMA @ 18.8751.

The previous day high was 17.2471 while the previous day low was 17.0789. The daily 38.2% Fib levels comes at 17.1431, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1829, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 17.0414, 16.976, 16.8731
• Pivot resistance is noted at 17.2097, 17.3125, 17.3779

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