- USD/MXN remains positive after bouncing back above 21-day SMA.
- 10-day SMA, previous week top still question the pullback.
- Sellers need a decisive break below the multi-day-old support trend line.
Following its bounce off two-week low, USD/MXN takes the bids to 24.24 during Friday’s Asian session. In doing so, the pair crosses 21-day SMA but stays below 10-day SMA. Though, failures to break the short-term key support line keep buyers hopeful.
As a result, 24.40 comprising 10-day SMA is the next on the bull’s radar ahead of 25.00 and the previous week’s top surrounding 25.30.
It should, however, be noted that the pair’s rise past-25.30 will have to cross March month top near 25.46 to question April top near 25.80, which in-turn could dim the upside momentum.
Alternatively, a daily closing below an ascending trend line from March 27, currently near 23.80, will be the trigger for sellers to target April lows near 23.28.
If at all the bears remain dominant past 23.28, 23.00 and late-March bottom close to 22.85 will be their favorites.
USD/MXN daily chart
Trend: Further recovery expected
Share
