USD/MXN Price Analysis: Mexican Peso buyers stay hopeful of revisiting 16.70 ahead of US data

• USD/MXN remains sidelined after reversing from weekly top.
• Doji candlestick below the key DMA confluence lures Mexican Peso buyers.
• Downbeat oscillators, four-month-old bearish channel keeps USD/MXN sellers hopeful.

USD/MXN struggles for clear directions after reversing from a one-week high the previous day, making rounds to 16.80 during Wednesday’s Asian session. In doing so, the Mexican Peso (MXN) pair justifies the previous day’s Doji candlestick to lure the pair sellers, especially amid the bearish MACD signals and the downbeat RSI (14) line, not oversold.

It’s worth noting, however, that the cautious mood ahead of the top-tier US data prods the momentum traders of late. Among the scheduled US statistics, ADP Employment Change, the final readings of the US second quarter (Q2) Gross Domestic Product (GDP) and the Personal Consumption Expenditure (PCE) are the key to watch.

Also read: USD/MXN climbs amid soft Mexican GDP, mixed US economic data

Not only Wednesday’s Doji and downbeat oscialltors, namely the MACD and the RSI line, but the quote’s sustained trading below the convergence of the 21-DMA and 50-DMA, around the 17.00 round figure by the press time, also favors the USD/MXN bears.

As a result, a horizontal area around 16.70, comprising multiple lows marked since the mid-July, lures the Mexican Peso (MXN) buyers.

Following that, the multi-month low marked in July near 16.62 and the bottom line of a four-month-old bearish channel, close to 16.40 by the press time, will be in the spotlight.

On the contrary, a daily closing beyond the aforementioned DMA confluence surrounding the 17.00 threshold becomes necessary for the USD/MXN bull’s return.

Even so, the bearish channel’s top line can challenge the Mexican Peso (MXN) sellers around 17.15 before giving them control.

USD/MXN: Daily chart

Trend: Bearish