USD/MXN Price Analysis: Mexican Peso bulls eye 2017 peak surrounding 17.45

• USD/MXN fades late Wednesday’s corrective bounce off the lowest levels since September 2017.
• Failure to extend corrective bounce beyond 18.04-05 support-turned-resistance keeps Mexican Peso buyers hopeful.
• 11-month-old descending trend channel, downward-sloping resistance line from April 2020 portray pair bear’s dominance.
• Nearly oversold RSI (14) hints at corrective bounce before poking 2017 low.

USD/MXN holds lower grounds at the intraday bottom of 17.88 heading into Thursday’s key European session. In doing so, the Mexican Peso (MXN) pair remains pressured at the multi-month low marked late Wednesday, after a corrective bounce.

That said, the USD/MXN pair dropped to the lowest levels since September 2017 as it broke horizontal support comprising multiple levels marked from August 2017, close to 18.04-05.

The bearish bias also takes clues from the downward-sloping trend channel from June 2022 and a 25-month-old descending resistance line.

It’s worth noting, however, that the below 50 levels of the RSI (14) hints at the corrective bounce in the Mexican Peso prices. The same could gain attention on staying beyond the aforementioned 18.04-05 support-turned-resistance.

Should the quote cross the 18.05 hurdle, the early 2020 bottom surrounding 18.55 will be in the spotlight before directing the USD/MXN buyers toward the multi-month-old resistance line near 18.95, quickly followed by the stated bearish channel’s top line, close to 19.25 at the latest.

Alternatively, the bottom line of the previously stated descending trend channel, near 17.55, can act as immediate support for the USD/MXN bears to watch.

Following that, the year 2017 bottom of around 17.44 will be crucial as the RSI (14) might have turned oversold, suggesting a short-term rebound.

Mexican Peso price: Weekly chart

Trend: Limited downside expected