Ella 
During the Asian session on Monday, USD/MXN held on to support at the 100-day simple moving average (SMA), but struggled to gain significant upward momentum. USD/MXN still faces resistance in the 17.2500 area, last week’s swing high, which should now become a key level for short-term traders.
Technical indicators on the daily chart are in positive territory, and continued strength in USD/MXN should pave the way for a clear move higher and push USD/MXN towards the 17.3810 area (September 12 highs). Some follow-through buying in USD/MXN could push prices further towards the next relevant resistance around the 17.5910-17.5960 level area, followed by the monthly high around the 17.7090-17.7095 area.
The dollar held steady near its highest level in more than six months and continued to be strongly supported by the Federal Reserve’s hawkish outlook, which signaled the need to keep interest rates higher for longer to push inflation to its 2% target. This, along with fewer expected rate cuts in 2024, continues to push U.S. bond yields higher and continues to support the U.S. dollar, favoring bulls.
Therefore, any significant decline in USD/MXN below the 100-day EMA is likely to continue to attract fresh longs near the 17.1010-17.0650 horizontal support. This should therefore help stem any downside as USD/MXN approaches last week’s swing lows around 16.9980. Spot prices USD/MXN may then turn vulnerable and retest the multi-year lows hit in August near the 16.6945 area.
