USD/MXN Price Analysis: Mexican peso stays on the back foot inside rising channel

• USD/MXN probes four-day winning streak amid nearly overbought RSI conditions.
• A bullish technical formation, coupled with sustained trading beyond 200-bar SMA, keeps buyers hopeful.
• A downside break of 200-bar SMA can fetch the quote to late-March low.

USD/MXN drops to 24.75, down 0.20% on a day, as the Tokyo session begins on Friday. Even so, the pair remains inside a short-term ascending trend channel while staying above 200-bar SMA.

As a result, buyers can keep targeting a run-up beyond 25.00 immediate resistance towards the late-March high of 25.46.

However, the pair’s upside beyond 25.46 will be questioned by the record top, marked early-April, around 25.80.

Meanwhile, a downside break of the aforementioned channel’s support, currently at 24.00, will need validation from a 200-bar SMA level of 23.78 to register further declines.

Should that happen, considering the nearly overbought RSI, March 26 low near 22.85 will be on the sellers’ radar.

USD/MXN forecast chart

Trend: Bullish