USD/MXN Election Reversal to Multi-Month Low

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

• Mexican Peso up to date technical commerce ranges – Every day & Intraday Charts
• USD/MXN reverses off downtrend resistance – breaks to multi-month lows
• Key assist 20.0752 – Danger for additional losses whereas under month-to-month open

The US Greenback is down greater than 1.9% towards the Mexican Peso this week regardless of a weekly vary of greater than 6.5%. The Presidential Election has fueled volatility throughout the USD Majors with USD/MXN breaking to multi-week highs yesterday earlier than reversing sharply to interrupt to multi-month lows. These are the up to date targets and invalidation ranges that matter on the USD/MXN technical worth charts. Evaluation my newest Technique Webinar for an in-depth breakdown of this Peso setup and extra.

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Mexican Peso Value Chart – USD/MXN Every day

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

Technical Outlook: In my final Mexican Peso Value Outlook we famous that USD/MXN had, “damaged under a key pivot zone however the follow-though seems to be a bit drained right here.” The area in focus was the Fibonacci confluence at 21.2316/2942 – worth straddled this zone for practically a month with the post-election rally failing yesterday at longer-term downtrend resistance. The next reversal has damaged under the September / October lows and dangers additional losses heading deeper into November trade- watch the shut in the present day for steering.

Preliminary every day assist rests with the sliding parallel simply decrease close to ~20.5000 – search for inflection there with a break decrease maintaining the concentrate on the 2019 swing excessive at 20.2561 and the 78.6% Fibonacci retracement at 20.0752. Preliminary resistance now again at 20.8377 with bearish invalidation lowered to the technical confluence / month-to-month open at 21.2316/2942.

Mexican Peso Value Chart – USD/MXN 120min

Notes: A closer have a look at Peso worth motion reveals USD/MXN buying and selling throughout the confines of a near-term descending pitchfork formation extending off the June / September highs with the election rally failing simply pips forward of the higher parallel / 61.8% retracement at 21.9920. The next reversal marks a break of the weekly opening-range and retains the main target decrease whereas under 21.2942.

Backside line: A weekly opening-range reversal retains the danger decrease in USD/MXN within the days forward. From a buying and selling standpoint, the decline is approaching near-term downtrend support- search for topside exhaustion forward of the weekly / month-to-month open on recoveries IF worth is certainly heading decrease. Finally a breach above this week’s excessive can be wanted to counsel a extra important low was registered this week. Take into accout we nonetheless have the FOMC rate of interest resolution and US Non-Farm Payroll (NFP) on faucet into the shut of the week- keep nimble.

For an entire breakdown of Michael’s buying and selling technique, evaluate his Foundations of Technical Evaluation collection on Building a Trading Strategy

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— Written by Michael Boutros, Technical Strategist with DailyFX

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