FxNews—The American currency has been in a robust uptrend against the Mexican Peso since July 12, starting from the 17.618 mark. However, the bullish momentum eased after the USD/MXN price peaked at the June 28 high of 18.59. As of writing, the currency pair trades at 18.43, testing the ascending trendline.
The USD/MXN 4-hour chart below demonstrates the price, key support and resistance levels, and the technical indicators utilized in today’s analysis.
USDMXN Technical Analysis – 29-July-2024
The price is above the 50- and 100-period simple moving average, which proves the bull market. The technical indicators suggest that the USD/MXN pair might trade sideways, indicating that the momentum weakens.
- The awesome oscillator’s recent bar turned red, depicting a declining value 0.20. This means the bull market is dimming.
- The relative strength index indicator (RSI 14) shows 64 in the description and is decreasing, signifying that the market is not overbought but that the uptrend is cooling down.
- The stochastic oscillator %K line’s value is 55 and rising from the middle, demonstrating uncertainty in the market. This adds to the speculation that the USD/MXN price could move sideways for a short while before the uptrend resumes.
USDMXN Forecast – 29-July-2024
The June 28 high at approximately 18.59 is the key resistance that kept the price from rising further. For the uptrend to resume, bulls (buyers) must close and stabilize the price above 18.59. If this scenario unfolds, the bullish wave initiated on July 12 from 17.61 will likely target the June 12 high at 18.99.
Please note that the bull market should be invalidated if the price dips below the June 26 low of 18.3.
- Also Read: USD/HKD Forecast – 29-July-2024
USD/MXN Bearish Scenario – 29-July-2024
The June 26 low at 18.3 is the immediate support. If the bears (sellers) close and stabilize the price below the immediate support, the consolidation phase could extend to the next support, the July 19 high at 18.10. Interestingly, the 18.1 supply zone is backed by the 50-period simple moving average (red line).
Furthermore, if the selling pressure exceeds 18.1, the next resistance area will be the June 24 low at 17.88.
USDMXN Support and Resistance Levels – 29-July-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 18.3 / 18.1 / 17.88 / 17.61
- Resistance: 18.59 / 18.99
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.