USD/MXN Price Analysis: Renews 23-month low on the way to 18.52

• USD/MXN bears poke the 2020’s yearly low during three-week losing streak.
• Clear downside break of multi-month-old support line, bearish MACD signals favor sellers.
• Oversold RSI conditions suggest limited downside room before a corrective bounce.

USD/MXN stands on slippery grounds as bears keep the reins for the third consecutive week, down 0.14% intraday around 18.65 by the press time of early Wednesday in Europe.

In doing so, the Mexican Peso (MXN) pair extends the previous day’s losses to drop to the lowest levels since February 2020.

The quote’s bearish trajectory could be linked to the downside break of the previous key support line from July 2017, now resistance around 19.73. Also keeping the pair sellers hopeful is the USD/MXN’s pullback from the 21-SMA, close to 19.62 at the latest. Furthermore, bearish MACD signals are extra positives for selling the pair.

However, the oversold RSI (14) line and nearness to the key support, namely the year 2020’s low of 18.52, hints at limited downside room for the USD/MXN bears to cheer.

In a case where the pair drops below 18.52 support, a slump toward 2017’s bottom of 17.44 can’t be ruled out.

Meanwhile, an upside clearance of the 21-SMA level of 19.62 will need validation from the 61.8% Fibonacci retracement level of the pair’s run-up from July 2017 to April 2020, close to 20.65, to convince USD/MXN buyers. That said, the 20.00 round figure could also challenge the pair’s recovery.

USD/MXN: Weekly chart

Trend: Limited downside expected