USD/MXN Price Analysis: Eyes 50-day average support

• USD/MXN's daily chart shows a contracting triangle breakdown. 
• Key Indicator has crossed into the bearish territory for first in two months. 

USD/MXN is looking south with the daily chart reporting a bearish reversal pattern. 

The pair dropped more than 1.5% on Friday, confirming a downside break of the five-week-long narrowing price range on the daily chart. The triangle breakdown indicates that the rally from lows near 18.50 observed in mid-February has ended and the bears have regained control. 

The 14-day relative strength index, too, has dropped below 50 for the first time in nearly two months. A below-50reading represents bearish conditions. 

The pair, therefore, looks set to test the 50-day average, currently at 23.4290. That would be the first test of the widely-tracked technical line in over two months. On the higher side, a close above 24.082 (Friday's top) is needed to invalidate bearish pressures. 

At press time, USD/MXN is trading largely unchanged on the day near 23.6158. 

Daily chart

Trend: Bearish

Technical levels