Technical analysis: Mexican Peso rally accelerates as USD/MXN edges toward 16.70

The USD/MXN downtrend is gathering momentum, even though the Relative Strength Index (RSI) indicator displays the pair as oversold. However, due to the strength of the move, traders look for oversold RSI readings at 20.00 as the exotic pair dives to test last year’s low of 16.62. Once that level is surpassed, the next stop would be October 2015’s low of 16.32.

Despite that, they need to reclaim the 17.00 figure, which could open the door to testing the 50-day Simple Moving Average (SMA) at 17.04, followed by the confluence of the 200-day SMA and the 100-day SMA at 17.23