USD/MXN Loses Ground Toward the Weekly CloseU.S. Dollar / Mexican PesoFOREXCOM:USDMXNFOREXcomOver the last three trading sessions, USD/MXN has posted a gain of more than 0.6% in the short term in favor of the U.S. dollar. For now, buying pressure has remained steady, partly due to the ongoing government shutdown in the United States, which has allowed the dollar to recover in the short term. This situation has triggered an outflow of capital from higher-risk currencies such as the Mexican peso. However, it is important to note that if U.S. political risk continues to extend over the coming sessions, the dollar may struggle to withstand a prolonged shutdown. In that case, indecision could once again dominate price action in the short term. Downtrend Holds Since early April this year, USD/MXN has maintained a steady downtrend in favor of the peso. So far, there has been no significant bullish correction to suggest that this trend has been broken, confirming that it remains the most relevant technical structure in the short term. As selling pressure returns to the market in the coming sessions, the bearish trend could continue to dominate the chart. RSI Although the RSI line has attempted to recover consistently, it remains oscillating below the neutral level of 50, indicating that bearish momentum continues to dominate in the short term. This confirms that the selling bias has not completely disappeared and may continue to influence movements in the coming sessions. MACD The MACD histogram shows very slight oscillations above the neutral zero line, suggesting that, on average, the strength of moving averages continues to generate a neutral sentiment. If the histogram remains close to zero, this could point to a scenario of price indecision in the next sessions. Key Levels to Watch: 18.82 – Major Resistance: Located where the 50-period moving average converges with the Ichimoku cloud. A sustained breakout above this level could activate a new short-term bullish trend. 18.55 – Nearby Barrier: Corresponds to the zone marked by the downtrend line currently in place. If the price breaks above this level, the trend would be at risk and could open the way to a more relevant short-term bullish bias. 18.30 – Critical Support: Corresponds to the retracement and recent lows of the past weeks. A break below this level would reinforce the dominance of the prevailing downtrend. Written by Julian Pineda, CFA – Market Analyst