The USDMXN exchange rate of 17.1858 is anticipating its first weekly increase in five, a result of the Mexican central bank’s decision to maintain its current position. According to @nehcap, there is potential for even more growth in the future.

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• USD/MXN eyes the first weekly gain in five on Mexican central bank’s status quo.

The pair currently trades last at 17.1858.

The previous day high was 17.2092 while the previous day low was 17.1128. The daily 38.2% Fib levels comes at 17.1724, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1496, expected to provide support.

USD/MXN picks up bids to refresh its intraday high near 17.18 as it stays on the way to reversing the mid-week losses amid early Friday. In doing so, the Mexican Peso (MXN) justifies Banxico’s inaction, as well as the broad US Dollar strength, ahead of the preliminary readings of the US S&P Global PMIs for June.

On Thursday, the central bank of Mexico, namely the Banxico, left its benchmark rate unchanged at 11.25% while matching the market forecasts. The same joined hawkish comments from Fed Chair Jerome Powell and the broad rush towards the US Dollar to push back the Mexican Peso buyers who returned to the home on Wednesday.

That said, the USD/MXN pair’s successful break of the 17.15 level comprising the 50-SMA, a one-week-old rising trend line and a downward-sloping previous resistance line from May 23 keeps the buyers hopeful. Adding strength to the upside bias is the RSI (14) line which is above 50.00 but not overbought.

With this, the Mexican Peso pair jostles with a one-month-old falling trend line resistance, around 17.20 by the press time.

In a case where the USD/MXN manages to cross the 17.20 hurdle, which is more likely, the 100-SMA can challenge the pair buyers around 17.30.

On the contrary, a downside break of the 17.15 support confluence will quickly drag the Mexican Peso pair to the monthly bottom surrounding 17.00, which is also the lowest level since December 2015.

Trend: Further upside expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.1826 at the time of writing. Pair opened at 17.1832 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 @ 17.3479, 50 SMA 17.6543, 100 SMA @ 18.0374 and 200 SMA @ 18.7903.

The previous day high was 17.2092 while the previous day low was 17.1128. The daily 38.2% Fib levels comes at 17.1724, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1496, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 17.1276, 17.072, 17.0312
• Pivot resistance is noted at 17.2239, 17.2647, 17.3203

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