It is predicted by @nehcap that the USDMXN exchange rate will continue to decrease, as it remains at a lower level following a brief two-day rebound from its previous decline. The current value stands at 17.1272.

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• USD/MXN holds lower grounds after snapping two-day recovery.

The pair currently trades last at 17.1272.

The previous day high was 17.2576 while the previous day low was 17.106. The daily 38.2% Fib levels comes at 17.1639, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.1997, expected to provide resistance.

USD/MXN aptly portrays the pre-event anxiety while posting mild gains around 17.13 amid early Thursday morning. In doing so, the Mexican Peso (MXN) pair licks its wounds after printing the first daily loss in three ahead of today’s Central Bank Interest Rate announcement from Mexico, namely the Banxico.

Also read: USD/MXN drops despite hawkish remarks from Fed Powell; Banxico decision in focus

Despite the latest inaction, the USD/MXN pair remains on the seller’s radar as it portrays the double-top bearish chart formation ahead of the Banxico announcements. Adding strength to the downside bias is the Mexican Peso (MXN) pair’s sustained trading below the 100-Exponential Moving Average (EMA), as well as a downside break of the one-week-old ascending trend line, intersecting each other around 17.15 by the press time.

It should be noted, however, that the below 50.0 levels of the RSI (14) line suggests bottom-picking and hence the multi-month low marked the last week around 17.00 gains major attention as the key support.

Should Banxico surprise markets with hawkish moves, the USD/MXN pair can quickly break the 17.00 support and confirm the “double tops” bearish chart formation, which in turn flashes a theoretical target of near 16.75.

Alternatively, an upside break of the 17.15 resistance confluence, mentioned above, isn’t an open invitation to the Mexican Peso sellers as the double tops near 17.25 can challenge the USD/MXN pair’s upside.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.129 at the time of writing. Pair opened at 17.119 and is trading with a change of 0.06% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 17.3815, 50 SMA 17.6709, 100 SMA @ 18.0521 and 200 SMA @ 18.8047.

The previous day high was 17.2576 while the previous day low was 17.106. The daily 38.2% Fib levels comes at 17.1639, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.1997, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 17.0642, 17.0094, 16.9127
• Pivot resistance is noted at 17.2157, 17.3124, 17.3673

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