• USD/MXN holds lower ground near intraday bottom, defends previous day’s U-turn from support-turned-resistance.
• Clear break below 50-DMA keeps Mexican Peso buyers hopeful.
• US CPI, Mexico Core Inflation for July eyed for clear directions.

USD/MXN bears keep the reins at the intraday low of around 17.04 during early Monday, keeping the previous day’s U-turn from the support-turned-resistance stretched from mid-May.

Adding strength to the downside bias about the Mexican Peso (MXN) pair is the quote’s clear downside break of the 50-DMA, as well as the cautious mood ahead of the inflation from Mexico and the US for July.

Even so, the bullish MACD signals and one-month-old horizontal support around the 17.00 round figure prods USD/MXN bears before giving them control.

In that case, 16.70 and the multi-month low marked in July around 16.60 will be in the spotlight.

Alternatively, the 50-DMA level of around 17.10 guards the immediate recovery of the USD/MXN pair ahead of the aforementioned support-turned-resistance, close to 17.38-40.

It should be noted that the Mexican Peso sellers remain off guard unless breaking the 100-DMA surrounding 17.55.

Above, the US and Mexican inflation data for July will be crucial to watch as the USD/MXN resumes the original downtrend. Should the scheduled data justify dovish concerns about the Fed and/or hopes of another rate hike from Banxico, the quote won’t hesitate to challenge the yearly low marked in July around 16.62