The USD/MXN climbed after falling to the 18.40 area, yet it’s recovering, with traders eyeing the 18.75 area following Wednesday’s losses. Momentum favors buyers, which, according to the Relative Strength Index (RSI), took a breather as the RSI pierced oversold levels.
For a bullish continuation, the USD/MXN must challenge the year-to-date (YTD) high at 18.99, followed by the psychological 19.00 mark. Further upside is seen at the March 20, 2023, high of 19.23, ahead of 19.50.
On the bearish side, a drop below 18.50, could sponsor a test of the psychological 18.00 mark, followed by the 50-day Simple Moving Average (SMA) at 17.97
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