Greenback vs Mexican Peso Technical Outlook: USD/MXN Breakdown Ranges

Mexican Peso Technical Worth Outlook: USD/MXN Close to-term Commerce Ranges

• Mexican Peso up to date technical commerce ranges – Weekly & Day by day Charts
• USD/MXN plummets greater than 15% to contemporary multi-month lows
• Threat for a deeper correction whereas under 22.1503- key assist 21.2316

The US Greenback is poised to mark the fourth consecutive weekly decline in opposition to the Mexican Peso with value now down greater than 15% off the file highs in April. The decline has now damaged under a key assist pivot we’ve been monitoring and retains the danger weighted to the draw back heading into the June open. These are the up to date targets and invalidation ranges that matter on the USD/MXN technical value charts. Assessment my newest Technique Webinar for an in-depth breakdown of this Peso commerce setup and extra.

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Mexican Peso Worth Chart – USD/MXN Weekly

Chart Ready by Michael Boutros, Technical Strategist; USD/MXN on Tradingview

Technical Outlook: In my final Mexican Peso Worth Outlook we famous that USD/MXN was approaching assist with a, “break / shut under 23.9074 wanted to maintain the main focus decrease within the greenback.” A break of the month-to-month opening-range lows on Could 20th fueled a decline of greater than 8% into the shut of the month earlier than closing simply above a key support pivot on the 2017 excessive / 50% retracement at 22.0376/1495– the Greenback is breaking this confluence zone into the beginning of June commerce and the danger stays for additional losses whereas under.

Mexican Peso Worth Chart – USD/MXN Day by day

Notes: A closer have a look at Peso value motion exhibits USD/MXN persevering with to commerce inside the confines of the descending pitchfork formation we’ve been monitoring off file highs with a break under the 25% parallel in the present day additional highlighting the danger for losses right here. An embedded descending channel retains the give attention to confluence assist at 21.2316/2941– look for a bigger response there IF reached. Close to-term bearish invalidation now at 22.1503 with a breach above the median-line / 100% ext at 22.7811 wanted to shift the broader focus again to the long-side within the Greenback.

Backside line: The Mexican Peso rally has taken USD/MXN under a key assist pivot in value and leaves the pair weak to additional losses heading into June commerce. From a buying and selling standpoint, look to scale back short-exposure / decrease protecting stops on a check of the decrease parallel – preserve an eye fixed out for a response there for steerage. In the end, a breach above 22.7811 could be wanted to place the bulls again in management.

For a whole breakdown of Michael’s buying and selling technique, assessment his Foundations of Technical Evaluation sequence on Building a Trading Strategy

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— Written by Michael Boutros, Technical Strategist with DailyFX

Comply with Michael on Twitter @MBForex