The Mexican Peso experiences significant weakening against the US Dollar, with the USD/MXN currency pair reaching two-year highs near 16.85. Despite the release of a strong US Nonfarm Payrolls report, bears in the Peso market remained unmoved, allowing the pair to trade at 16.88 at the time of analysis, with expectations of further depreciation toward April 2024 lows at 16.74.
USD/MXN Price Forecast: Technical Outlook
Technical indicators suggest the downtrend could extend as USD/MXN moves closer to two-year lows. Bearish momentum strengthens further, with the Relative Strength Index (RSI) entering deeper bearish territory, signaling sustained selling pressure.
The initial support level is positioned at 16.50. Below this, the market may test May 2024’s monthly low of 16.52, followed by the 2024 annual low at 16.26. A breach of these levels could open the door to the psychologically critical 16.00 mark.
For a bullish reversal to materialize, buyers must surpass the 17.00 threshold to indicate potential strength. Subsequent resistance targets the August 19 high at 17.07, with a confirmed breakout pointing toward the 50-day Simple Moving Average (SMA) at 17.25 and the 100-day SMA at 17.30. Extended upside would challenge the 200-day SMA at 17.48.
USD/MXN Daily Chart Analysis
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