- USD/MXN probes four-day winning streak amid nearly overbought RSI conditions.
- A bullish technical formation, coupled with sustained trading beyond 200-bar SMA, keeps buyers hopeful.
- A downside break of 200-bar SMA can fetch the quote to late-March low.
USD/MXN drops to 24.75, down 0.20% on a day, as the Tokyo session begins on Friday. Even so, the pair remains inside a short-term ascending trend channel while staying above 200-bar SMA.
As a result, buyers can keep targeting a run-up beyond 25.00 immediate resistance towards the late-March high of 25.46.
However, the pair’s upside beyond 25.46 will be questioned by the record top, marked early-April, around 25.80.
Meanwhile, a downside break of the aforementioned channel’s support, currently at 24.00, will need validation from a 200-bar SMA level of 23.78 to register further declines.
Should that happen, considering the nearly overbought RSI, March 26 low near 22.85 will be on the sellers’ radar.
USD/MXN forecast chart
Trend: Bullish
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