USD/MXN Breaking Down Below Key Trend Line

Chart Analysis:

The USD/MXN pair has definitively broken below the rising trendline (black), suggesting a potential shift in the bullish structure. The price is now consolidating below the trendline near 20.14, with the next support levels coming into focus.

1️⃣ Trendline Break:

The drop below the rising trendline indicates a weakening of the previous bullish momentum. Traders may now look for confirmation of a further bearish move.

2️⃣ Moving Averages:

50-day SMA (blue): At 20.19, price is hovering just below this level, reinforcing bearish pressure.
200-day SMA (red): Positioned at 18.64, this serves as the next significant support if selling intensifies.

3️⃣ Momentum Indicators:

RSI: At 47.12, trending lower but not yet oversold, leaving room for additional downside.
MACD: Negative and flattening, indicating continued bearish momentum with no signs of reversal yet.

What to Watch:

If the pair continues lower, the next key support zone lies near 19.80–20.00, followed by the 200-day SMA at 18.64.
For bullish recovery, the price would need to reclaim the broken trendline and move back above the 50-day SMA at 20.19.

The USD/MXN trendline break shifts the focus to downside risks, with key support zones and momentum indicators suggesting further bearish potential.

-MW