• USD/MXN retreats from key EMA hurdle, fades the previous day’s rebound from one-week low.
• Banxico kept benchmark interest rates unchanged on mixed inflation clues.
• Bullish MACD signals keep Mexican Peso sellers hopeful of crossing four-month-old resistance.
• Bears need validation from 16.70 and US inflation data to keep the reins.

USD/MXN clings to mild losses near 17.11 heading into Friday’s European session as market players seek more clues to defend the previous day’s recovery from the weekly low. In doing so, the Mexican Peso (MXN) pair fades the currency’s fall past Banxico’s status quo amid fears of the Federal Reserve’s (Fed) policy pivot.

That said, the bullish MACD signals join the USD/MXN pair’s ability t stay beyond the 21-day Exponential Moving Average (EMA) and five-week-old horizontal support to keep the buyers hopeful to visit the area between 17.00 and 16.98.

Even so, the 50-EMA hurdle of 17.14 guards the immediate upside of the USD/MXN pair, a break of which could direct the Mexican Peso (MXN sellers toward the downward-sloping resistance line from early April, close to 17.28 at the latest.

It’s worth observing that the monthly high of nearly 17.42 acts as the final defense of the Mexican Peso buyers.

On the flip side, a clear break below the 16.98 support needs validation from the previous monthly low of around 16.62 to convince the USD/MXN bears.

Overall, USD/MXN remains on the bull’s radar despite the latest retreat.

USD/MXN: Daily chart

Trend: Limited upside expected