Mexican Peso likely to erase previous gain against US dollar, buy on dips

• Pair is currently trading around 18.21 levels.
  
  
• It made intraday high at 18.24 and low at 18.17 levels.
  
  
• Intraday bias remains bullish till the time pair holds key support at 17.99 levels.
  
  
• Alternatively, a daily close below 18.00 marks will take the parity towards key support area around 17.20 levels.
  
  
• In addition 20, 30 and 55D EMA signals bullish trend.
  
  
• Initial resistance levels are seen at 18.37, 18.94 and 19.44 levels.
  
  
• On the other side, key support levels are seen at 18.00, 17.20 and 16.94 levels.

We prefer to take long position in USD/MXN around 18.20, stop loss 17.99 and target 18.74/19.11 thereafter.