USD/MXN: Is the Uptrend Breaking?

Chart Analysis:

USD/MXN has broken below a key ascending trendline (blue), suggesting potential weakening in the bullish momentum observed since mid-2024.

1️⃣ Key Support Breakdown:

The pair closed below the ascending trendline at 20.25, signaling potential bearish pressure.
The next key support lies near 20.00, a psychological level and a significant horizontal zone.

2️⃣ Moving Averages:

50-day SMA (blue): At 20.38, acting as dynamic resistance following the breakdown.
200-day SMA (red): Positioned lower at 19.05, confirming a longer-term bullish structure remains intact despite recent weakness.

3️⃣ Momentum Indicators:

RSI: At 43.19, showing bearish momentum but not yet oversold.
MACD: Hovering near the zero line with a slight bearish crossover, indicating waning upward momentum.

What to Watch:

A sustained move below 20.00 could confirm a deeper bearish correction toward the 200-day SMA.

A recovery back above the trendline and 20.38 could invalidate the bearish breakout and signal a continuation of the bullish trend.

USD/MXN's near-term direction hinges on its ability to either hold above 20.00 or reclaim the broken trendline for renewed bullish momentum.

-MW