USD/MXN Rally Testing June Excessive

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 rebound stalls at month-to-month range-high
• Constructive whereas above weekly open – key near-term resistance at 23.3740

The US Greenback pressed greater towards the Mexican Peso this week with USD/MXN up greater than 0.7% heading into the US open on Thursday. The advance is in its’ third consecutive week and takes worth into the month-to-month vary highs – we’re searching for a response up right here for steerage. These are the up to date targets and invalidation ranges that matter on the USD/MXN technical worth charts. Overview my newest Weekly Technique Webinar for an in-depth breakdown of this Peso commerce 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 the USD/MXN restoration was,“going through the primary take a look at of assist on this pullback. From a buying and selling standpoint, search for draw back exhaustion forward of 21.9859 IF worth is certainly heading greater with a breach above the April lows wanted to counsel a mores vital low was registered this month.” Value briefly registered a low at 21.8905 the next day earlier than reversing sharply greater to shut again above month-to-month open assist at 22.1495. The rally is now stalling on the June opening-range highs and leaves the quick advance susceptible whereas beneath this threshold.

USD/MXN has continued to commerce throughout the confines of a descending pitchfork formation extending off the yearly excessive with preliminary each day assist seen on the highlighted trendline confluence close to ~22.5600. Crucial assist and broader bullish invalidation stays at 22.0257/1503.

Mexican Peso Value Chart – USD/MXN 120min

Notes: A closer take a look at Peso worth motion reveals USD/MXN buying and selling inside an embedded ascending pitchfork off the month-to-month lows – search for assist forward of the weekly open at 22.5800 IF worth is heading greater on this stretch. A topside breach exposes subsequent aims on the 38.2% retracement of the April decline / median-line at 23.1089and key resistance on the April low / 100% extension at 23.2710/3740– an in depth above could be wanted to gasoline the subsequent leg greater in the direction of confluence each day resistance at 23.52491/6189.

Backside line: The USD/MXN advance is testing resistance on the month-to-month vary highs and we’re searching for a response right here for steerage. From a buying and selling standpoint, a superb zone to cut back long-exposure / increase protecting stops – search for draw back exhaustion forward of the weekly open on pullbacks with a breach of the month-to-month highs wanted to maintain the advance viable. In the end, a bigger advance might supply extra favorable alternatives nearer to downtrend resistance. We’ll require a break beneath 22.0570 to place the bears again in management.

For an entire breakdown of Michael’s buying and selling technique, overview 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