USD/MXN Price Analysis: Double tops keeps Mexican Peso buyers hopeful of revisiting 17.00, Banxico eyed

• USD/MXN holds lower grounds after snapping two-day recovery.
• Sustained trading below 100-EMA, downside break of weekly support line favor confirmation of bearish chart pattern.
• Banxico is likely to announce no interest rate change but a surprise won’t hesitate to break the key 17.00 support.
• Mexican Peso sellers remain off the table below 17.25.

USD/MXN aptly portrays the pre-event anxiety while posting mild gains around 17.13 amid early Thursday morning. In doing so, the Mexican Peso (MXN) pair licks its wounds after printing the first daily loss in three ahead of today’s Central Bank Interest Rate announcement from Mexico, namely the Banxico.

Also read: USD/MXN drops despite hawkish remarks from Fed Powell; Banxico decision in focus

Despite the latest inaction, the USD/MXN pair remains on the seller’s radar as it portrays the double-top bearish chart formation ahead of the Banxico announcements. Adding strength to the downside bias is the Mexican Peso (MXN) pair’s sustained trading below the 100-Exponential Moving Average (EMA), as well as a downside break of the one-week-old ascending trend line, intersecting each other around 17.15 by the press time.

It should be noted, however, that the below 50.0 levels of the RSI (14) line suggests bottom-picking and hence the multi-month low marked the last week around 17.00 gains major attention as the key support.

Should Banxico surprise markets with hawkish moves, the USD/MXN pair can quickly break the 17.00 support and confirm the “double tops” bearish chart formation, which in turn flashes a theoretical target of near 16.75.

Alternatively, an upside break of the 17.15 resistance confluence, mentioned above, isn’t an open invitation to the Mexican Peso sellers as the double tops near 17.25 can challenge the USD/MXN pair’s upside.

USD/MXN: Hourly chart

Trend: Further downside expected