• USD/MXN holds lower grounds after breaking five-week-old key support line.
• Bearish MACD signals, absence of oversold RSI conditions keep Mexican Peso buyers hopeful of targeting 17.80.
• July 2017 low becomes crucial support for USD/MXN bears to watch.
• Buyers remain off the table below 200-SMA hurdle, support-turned-resistance line from March guards immediate upside.

USD/MXN bears attack 18.00 threshold after breaking a short-term key support line early Monday. That said, the Mexican Peso pair remains pressured towards the yearly low marked in early March, around 17.98 by the press time.

Given the absence of an oversold RSI (14), the USD/MXN price is likely to decline further and hence a fresh 2023 bottom, currently around 17.89 can’t be ruled out.

In that case, multiple lows marked in June 2017 around 17.80 gain the market’s attention. However, the year 2017 bottom surrounding 17.44 could challenge the USD/MXN bears afterward.

If not, then the quote’s south run towards the 17.00 round figure can’t be ruled out.

On the flip side, recovery moves need to stay beyond the immediate support-turned-resistance line, around the 18.00 threshold.

Following that, a three-week-old resistance line near 18.05 could challenge the USD/MXN rebound.

However, the Mexican Peso buyers keep the reins unless the quote stays comfortably beyond the 200-SMA hurdle surrounding 18.32.

Overall, USD/MXN is well set for fresh 2023 bottom but the downside room appears limited.

USD/MXN: Four-hour chart

Trend: Further downside expected