USD/MXN Price Analysis: Mexican Peso buyers eye 16.70 despite adverse RSI conditions

• USD/MXN seesaws at the lowest level in three weeks after declining in the last six consecutive days.
• Sustained trading below 200-SMA, bearish MACD signals favor Mexican Peso pair sellers.
• Oversold RSI conditions, five-week-old horizontal support restrict immediate downside.
• Mexican Peso bears need validation from 17.05 to retake control.

USD/MXN seesaws around 16.80 as bears take a breather at a three-week low during early Thursday, after declining for six consecutive days. In doing so, the Mexican Peso (MXN) pair portrays the market’s cautious mood as a two-day-long annual Jackson Hole Symposium event begins.

It’s worth noting that the clear downside break of the 200-SMA and 61.8% Fibonacci Retracement of July 28 to August 04 upside, respectively near 16.95 and 16.93, joins the bearish MACD signals to lure the Mexican Peso buyers.

However, oversold conditions of the RSI (14) line suggest the brighter chances of the USD/MXN pair’s bottom-picking amid the pre-event anxiety.

As a result, a horizontal area comprising multiple levels marked since July 17, around 16.70 by the press time, gains major attention.

If at all the USD/MXN bears keep the reins past 16.70, the multi-year low marked in July at around 16.62 will put a floor under the price.

On the flip side, the aforementioned key Fibonacci retracement level around 16.93, also known as the “Golden Ratio”, precedes the 200-SMA level of 16.95 to restrict the short-term recovery of the USD/MXN pair.

Following that, a downward-sloping resistance line from August 04, close to 17.05 at the latest, will act as the final defense of the Mexican Peso pair sellers.

USD/MXN: Four-hour chart

Trend: Limited downside expected