USD/MXN: The Mexican Peso Starts a New Bullish Bias U.S. Dollar / Mexican PesoFOREXCOM:USDMXNFOREXcomDuring the latest trading session, the Mexican peso has started to appreciate by nearly 1%, supported by short-term weakness in the U.S. dollar. For now, bearish pressure has begun to dominate the pair, mainly because the dollar is under pressure following signs that the Federal Reserve may consider cutting interest rates after the slowdown in U.S. job growth. The renewed weakness in the U.S. dollar has allowed the Mexican peso to steadily gain ground, and as this dynamic continues, selling pressure may become increasingly relevant in the short term. Sideways Range Holds: Recent price fluctuations over the past few weeks have begun to form a steady sideways range, with resistance near the 19.00 pesos per dollar level and support around 18.50 pesos per dollar. So far, recent moves have been insufficient to break out of this lateral formation, which remains the most relevant pattern to monitor for upcoming sessions. As long as price continues to fluctuate within this range, the lack of clear direction may dominate the market in the coming days. RSI: The RSI indicator line continues to hover near the 50 level, signaling that neutral momentum between buying and selling pressure is prevailing in the short term. As long as this behavior persists, indecision may continue to dominate price action. MACD: The MACD histogram has also started to slowly descend toward the zero line, suggesting that a new bearish slope may be forming. This points to weakening momentum between the moving averages. If the MACD continues to show signs of losing strength, sideways consolidation could remain the dominant structure. Key Levels to Watch: 19.35 pesos per dollar: Key resistance aligned with the 50-period moving average. Sustained buying above this level could trigger a meaningful bullish trend in upcoming sessions. 19.00 pesos per dollar: Nearby resistance that marks the top of the short-term sideways channel. A breakout above this psychological level could reinforce bullish momentum. 18.50 pesos per dollar: Critical support marking recent multi-week lows. A break below this level could resume the broader bearish trend seen in previous weeks. Written by Julian Pineda, CFA – Market Analyst