USD/MXN 1H Chart: Bears to prevail soon
The US Dollar has been trading in an ascending channel against the Mexican Peso since mid-April. This junior pattern was formed when the pair reversed from a one-year channel near 18.00.
The Greenback has been trading slightly below the upper boundary of this senior channel during the past two weeks. This level at 20.20 was not reached, as the 20.03 mark proved to be strong resistance on two separate occasions.
The most recent development shows that the pair breached the short-term ascending channel today. This could point to further decline until the medium-term pattern and the 50.0% Fibo retracement at 19.75 and subsequently even lower down to 19.20. The positioning of technical indicators likewise points to a possible fall within the following two to three weeks.
In case some upward movement occurs early this week, it is unlikely to exceed the senior channel at 20.20.
The Greenback has been trading slightly below the upper boundary of this senior channel during the past two weeks. This level at 20.20 was not reached, as the 20.03 mark proved to be strong resistance on two separate occasions.
The most recent development shows that the pair breached the short-term ascending channel today. This could point to further decline until the medium-term pattern and the 50.0% Fibo retracement at 19.75 and subsequently even lower down to 19.20. The positioning of technical indicators likewise points to a possible fall within the following two to three weeks.
In case some upward movement occurs early this week, it is unlikely to exceed the senior channel at 20.20.