USD/MXN Price Analysis: Steadies at multi-month low near $18.40 ahead of Mexican inflation

• USD/MXN grinds near the lowest levels since April 2018.
• Nearly oversold RSI conditions challenge bears on their way to three-month-old support line.
• Two-week-long descending trend line challenges bulls before $18.50 resistance confluence.
• Sustained trading below the key trend line, moving average joins bearish MACD signals to favor sellers.

USD/MXN bears take a breather around $18.40 during early Thursday, following a slump to a nearly five-year low the previous day.

In doing so, the Mexican Peso (MXN) pair takes clues from the RSI (14) conditions to probe the sellers. However, bearish MACD signals and the quote’s sustained trading below the previous support line from early February, as well as the 10-DMA, keep the bears hopeful.

That said, the latest multi-month low near $18.30 appears immediate support for the USD/MXN bears to watch during the quote’s fresh downside.

Following that, a descending support line from late November 2022, close to $18.20 by the press time, will be crucial to challenge the pair’s further declines.

In a case where USD/MXN remains bearish past $18.20, the April 2018 low near the $18.00 threshold should lure the sellers.

On the contrary, recovery moves may initially aim for the fortnight-old resistance line, close to $18.40 by the press time.

Following that, a convergence of the 10-DMA and the support-turned-resistance line from February 02, close to $18.50, will be crucial to watch before welcoming the buyers.

USD/MXN: Daily chart

Trend: Further downside expected