#USDMXN @ 17.5382 remains pressured at the lowest levels in two weeks after snapping two-day uptrend., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/MXN remains pressured at the lowest levels in two weeks after snapping two-day uptrend.
• Clear downside break of short-term support line, bearish MACD signals favor Mexican Peso buyers.
• 50-SMA, descending resistance line from late April adds to the upside filters.
• Oscillators keep sellers hopeful but the downside appears bumpy.

The pair currently trades last at 17.5382.

The previous day high was 17.7286 while the previous day low was 17.5409. The daily 38.2% Fib levels comes at 17.6126, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.6569, expected to provide resistance.

USD/MXN prods intraday low near 17.54 as it run the previous day’s bearish play despite a limited audience on early Friday. In doing so, the Mexican Peso (MXN) pair extends the mid-week reversal from the 50-SMA, as well as the downside break of a two-week-old rising trend line.

Not only a U-turn from the short-term key moving average and the support line break but the bearish MACD signals also favor the USD/MXN sellers. However, the RSI (14) line remains below 50.0 and hence suggests limited downside room.

As a result, the multi-month low marked in May around 17.42 gains the USD/MXN pair seller’s attention.

In a case where the USD/MXN pair remains bearish past 17.42, it will witness a bumpy road toward the 17.00 psychological magnet. That said, the year 2016 low of 17.05 may act as an intermediate halt.

Alternatively, recovery moves need to cross the immediate support-turned-resistance, around 17.58 by the press time, to recall the USD/MXN buyers.

Even so, the 50-SMA level of around 17.73 may challenge the pair buyers before giving them control.

It’s worth noting that a convergence of the downward-sloping resistance line from late April and 61.8% Fibonacci retracement of April-May fall, around 17.90, quickly followed by the 18.00 round figure, acts as the last defense of the bears.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.544 at the time of writing. Pair opened at 17.5532 and is trading with a change of -0.05% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 17.687, 50 SMA 17.9287, 100 SMA @ 18.2672 and 200 SMA @ 18.9978.

The previous day high was 17.7286 while the previous day low was 17.5409. The daily 38.2% Fib levels comes at 17.6126, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.6569, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 17.4866, 17.4199, 17.2989
• Pivot resistance is noted at 17.6742, 17.7952, 17.8619

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