#USDMXN @ 18.3223 picks up bids to print four-day rebound from one-month low., @nehcap view: Further recovery expected
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- USD/MXN picks up bids to print four-day rebound from one-month low.
- Easing bearish bias of MACD signals, clear break of 10-DMA keeps buyers hopeful.
- Convergence of 21-DMA, 50-DMA appears a tough nut to crack for Mexican Peso sellers.
USD/MXN buyers stay in the driver’s seat for the fourth consecutive day during early Thursday. That said, the Mexican Peso (MXN) pair remains firmer around 18.32 by the press time after positing the first daily closing beyond the 10-DMA in two weeks on Wednesday.
Not only the 10-DMA breakout but the recently improving MACD line and receding bearish signals also favor the USD/MXN buyers.
However, a convergence of the 21-DMA and the 50-DMA can challenge the Mexican Peso (MXN) sellers around 18.45-50.
Following that, a downward-sloping resistance line from late December 2022, around 18.80 at the latest, can act as an extra upside filter.
It’s worth noting that the USD/MXN bears may remain hopeful unless the quote stays below the 100-DMA hurdle of 18.90.
On the contrary, a daily closing below the 10-DMA level of 18.20 can renew USD/MXN downside.
In that case, the latest swing low of 17.96 and the multi-month bottom marked in March around 17.89 will be in focus.
Should the USD/MXN bears remain in power after 17.89, the August 2017 low of around 17.57 may flash on their radars.
Overall, USD/MXN is likely to witness further recovery but the bulls are far from taking control.
Trend: Further recovery expected
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