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USD/MXN jostles with the 200-EMA, 100-EMA confluence to prod two-day downtrend.
Bearish MACD signals, downbeat RSI (14) suggest further declines.
Seven-week-old horizontal support appears tough nut to crack for bears.
Buyers need successful break of multi-day-old resistance line for conviction.
USD/MXN bears take a breather around 18.60 during early Wednesday as market players await the Federal Open Market Committee (FOMC) monetary policy meeting outcome.
Even so, the Mexican Peso (MXN) pair prints mild gains while snapping the previous two-day losing streak at the lowest levels in a week.
That said, the convergence of the 100-bar Exponential Moving Average (EMA) and the 200-EMA restricts the immediate downside of the USD/MXN pair.
However, the bearish MACD signals and downbeat RSI (14), not oversold, keeps sellers hopeful of breaking the 18.60 support confluence.
It’s worth noting, though, that the USD/MXN bears struggled to break the support confluence around 18.50 since early February. Maintenance of the resistance at 18.60 may see the pair may experience a decline towards 18.00.
During the anticipated fall, the mid-March swing low joins the early March peaks to highlight the 18.25-20 region as an extra filter towards the south.
On the flip side, the USD/MXN pair’s rebound from the current levels can again aim for the 19.00 round figure before marking one more battle with a descending resistance line from early January, close to 19.20 at the latest.
Overall, USD/MXN is likely to remain pressured even if the room towards the south appears limited.
Trend: Limited downside expected
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