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USD/MXN slides for 14th straight day, breaks toward 17.00 support
The pair holds below 17.05 after soft US inflation data, and a move under 17.00 could expose 16.52 and 16.26.
The USD/MXN pair extended its downtrend for the 14th straight day, edging down 0.08% as the Mexican peso hovered near a 24-month low around 17.01, according to FXStreet.
FXStreet said traders have been digesting recent soft US inflation figures, and that USD/MXN is trading below the 50-day and 100-day simple moving averages after clearing them by the end of July. The article noted the prevailing pattern of lower highs and lower lows, with attention on the 17.00 level.
The outlet added that the relative strength index points to the selloff losing momentum, with the rate of change between sessions narrowing and traders remaining reluctant to place fresh directional bets. FXStreet said that could set up either consolidation before the downtrend resumes or a potential base with a rebound.
On further weakness, FXStreet wrote that breaking below 17.00 could open the door to retesting May 2024’s monthly low at 16.52, then April 2024’s low at 16.26, followed by support near 16.00. For a reversal scenario, it cited 17.38 for the 50-day SMA, 17.40 for the 100-day SMA, and 17.59 for the 200-day SMA as key levels.