USDMXN posts 11-day low; bearish cross in place.
USD/MXN is extending its declines for the sixth straight day, hitting an 11-day low of 18.5853 earlier on Friday.
The RSI has moved below the 50 neutral-perceived level and continues to decline. This is indicative of bearish short-term momentum for the pair.
Additional losses could meet support around the current level of the 200-day moving average at 18.4508, with a downside violation bringing into view the five-month low of 18.2978 that was recorded in late January.
On the upside, the range around the 23.6% Fibonacci retracement level of the December 26 to January 25 down-leg at 18.6735 might be currently providing resistance. Further above, a resistance area could be formed around the 50-day MA at 18.7863 and the 38.2% Fibonacci mark at 18.9096 (this is where the 100-day MA also lies at the moment).
The medium-term picture is looking mostly bearish, with price action taking place below the 50- and 100-day MA lines, while a bearish cross was also recorded in late February when the 50-day MA moved below the 100-day one.
Overall, both the short- and medium-term outlooks are looking negative at the moment.
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