#USDMXN @ 17.5723 takes offers to approach 13-day-old horizontal support zone, down for the third consecutive day., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/MXN takes offers to approach 13-day-old horizontal support zone, down for the third consecutive day.
• Oversold RSI (14) line challenges Mexican Peso pair’s further downside toward yearly bottom.
• 200-SMA, two-month-old descending resistance line check USD/MXN bulls before giving them control.

The pair currently trades last at 17.5723.

The previous day high was 17.639 while the previous day low was 17.5348. The daily 38.2% Fib levels comes at 17.5746, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.5992, expected to provide resistance.

USD/MXN holds lower ground near the lowest levels in a fortnight, mildly offered around 17.57 during early Tuesday in Europe, as it prints a three-day losing streak.

In doing so, the Mexican Peso (MXN) pair approaches a short-term key horizontal support comprising multiple levels marked since May 11, around 17.53-54. Adding strength to the stated horizontal support is the RSI (14) line poking the oversold territory.

Should the USD/MXN pair remains bearish past 17.53, it can quickly prod the yearly low marked the last week around 17.42.

It’s worth noting that the quote’s sustained weakness past 17.42 makes it vulnerable to plunging towards the year 2016 bottom of around 17.05 and then to the 17.00 round figure.

Meanwhile, the USD/MXN pair’s expected recovery appears to have a limited upside room as the 17.62-63 zone, comprising multiple levels marked since May 11, guards the immediate rise.

Following that, the 200-SMA hurdle of 17.85 and a descending resistance line from early April, close to 17.92, can challenge the pair buyers ahead of directing them to the 18.00 round figure.

Overall, USD/MXN is likely to recover but the upside room appears limited.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.574 at the time of writing. Pair opened at 17.5926 and is trading with a change of -0.11% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 17.7332, 50 SMA 17.9863, 100 SMA @ 18.3068 and 200 SMA @ 19.0323.

The previous day high was 17.639 while the previous day low was 17.5348. The daily 38.2% Fib levels comes at 17.5746, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.5992, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 17.5386, 17.4846, 17.4344
• Pivot resistance is noted at 17.6428, 17.693, 17.747

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