#USDMXN @ 18.0661 retreats from intraday high, snaps two-day losing streak., @nehcap view: Recovery expected (Pivot Orderbook analysis)

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• USD/MXN retreats from intraday high, snaps two-day losing streak.
• Three-week-old descending trend line restricts immediate upside ahead of the key SMAs.
• RSI pokes short-term resistance line during eight-day-long bearish trend, suggesting return of upside momentum.
• Rising support line from early March, YTD low joins downbeat RSI to challenge Mexican Peso buyers.

The pair currently trades last at 18.0661.

The previous day high was 18.1237 while the previous day low was 17.9753. The daily 38.2% Fib levels comes at 18.032, expected to provide support. Similarly, the daily 61.8% fib level is at 18.067, expected to provide resistance.

USD/MXN eases from the intraday high to 18.08 during the first positive day in three heading into Friday’s European session.

In doing so, the Mexican Peso (MXN) pair retreats from a downward-sloping resistance line from late March while fading the bounce off a five-week-old support line, marked the previous day.

Given the downward-sloping RSI (14), the USD/MXN weakness appears elusive. On top of that, the RSI line currently pokes an eight-day-long trend line resistance and hence a breakout can allow the momentum to improve, which in turn can trigger the pair’s rebound.

However, the 100-SMA and the 200-SMA levels, respectively around 18.20 and 18.32, can challenge the USD/MXN bulls. Also acting as an upside filter is the monthly high of 18.40.

It’s worth noting that the Mexican Peso buyers need validation from an upward-sloping support line from early March, around the 18.00 round figure, as well as from the RSI (14) that is currently weak.

Even if the USD/MXN price breaks the 18.00 support, the Year-To-Date (YTD) support near 17.89, marked in March, should lure the bears.

Trend: Recovery expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 18.08 at the time of writing. Pair opened at 18.0126 and is trading with a change of 0.37% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.3034, 50 SMA 18.4205, 100 SMA @ 18.8379 and 200 SMA @ 19.4358.

The previous day high was 18.1237 while the previous day low was 17.9753. The daily 38.2% Fib levels comes at 18.032, expected to provide support. Similarly, the daily 61.8% fib level is at 18.067, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 17.9507, 17.8888, 17.8022
• Pivot resistance is noted at 18.0991, 18.1856, 18.2475

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