- USD/MXN picks up bids to reverse the previous day’s pullback from six-week high.
- Convergence of 100-HMA, 50-HMA challenges Mexican Peso pair buyers.
- Mexican markets are off due to Benito Juarez’s Birthday.
- Looming bull cross on MACD, steady RSI keeps buyers hopeful.
USD/MXN consolidates the previous day’s losses from a 1.5-month high during a sluggish Tuesday morning as Mexican Peso traders celebrate Benito Juarez’s Birthday. That said, the pair remains mildly bid near 18.84 by the press time.
In doing so, the Mexican Peso pair pokes a convergence of the 50-Hour Moving Average (HMA) and the 100-HMA.
It should be noted, however, that the impending bull cross on the MACD and steady RSI (14) keeps USD/MXN buyers hopeful of crossing the 18.85 key resistance confluence.
Following that, the 19.00 threshold may act as an intermediate halt during a likely run-up towards the latest peak of 19.23 and to the previous monthly high surrounding 19.30.
In a case where USD/MXN remains firmer past 19.30, bulls may find it difficult to cross the 19.60 and 19.90 levels marked in December 2022 before approaching the 20.00 psychological magnet.
On the contrary, pullback moves remain elusive until the USD/MXN pair stays beyond a one-week-old support line, close to 18.70 by the press time.
Even if the Mexican Peso pair breaks the aforementioned support line, the 200-HMA level of near 18.65 can prod the bears before giving them control.
USD/MXN: Hourly chart
Trend: Further upside expected