USD/MXN Faces Another Key Support ZoneU.S. Dollar / Mexican PesoFOREXCOM:USDMXNFOREXcomOver the last three sessions, the USD/MXN pair has posted a depreciation of around 0.8%, with selling pressure remaining in favor of the Mexican peso. This move is mainly driven by speculation around the upcoming release of U.S. inflation (CPI) data, scheduled for tomorrow. Markets are looking to confirm whether inflation has started to ease in the short term, which would allow the Federal Reserve to maintain its outlook for lower interest rates. This expectation has weakened the U.S. dollar and, in turn, given the Mexican peso room to strengthen in recent sessions. If the inflation data reinforces this view, selling pressure on the pair could remain relevant. Sideways Range Remains Intact Although recent movements are starting to show a more evident bearish bias, they have not yet been sufficient to break the sideways channel between 19.00 pesos per dollar and 18.50 pesos per dollar. This range continues to be the most important technical formation in the short term. As long as the price fails to decisively break these levels, neutrality is likely to dominate trading in the sessions ahead. Technical Indicators RSI: The RSI line has crossed below the central 50 level and maintains a downward slope, indicating that selling impulses are beginning to dominate in the short term. However, since the indicator remains close to the neutral zone, the market could easily slip back into a phase of steady neutrality in the coming sessions. MACD: The MACD histogram shows slight oscillations around the zero line, reflecting a lack of clear direction in the short term. In this context, the broader chart still points to a neutral stance. Key Levels: 19.00 pesos per dollar – Resistance: Aligned with the 50-period moving average and the upper boundary of the Ichimoku cloud. A breakout above this level could open the way to a short-term bullish bias. 18.70 pesos per dollar – Nearby Barrier: Midpoint of the current sideways range. As long as the price trades around this area, neutrality is likely to prevail and extend the range structure. 18.50 pesos per dollar – Crucial Support: Marks the zone where recent lows have held in the past weeks. A breakdown below this level would represent a significant break, potentially confirming the continuation of the downtrend that has persisted throughout 2025. Written by Julian Pineda, CFA – Market Analyst