USD/MXN Rally to be Brief Lived

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

• Mexican Peso up to date technical commerce ranges – Every day & Intraday Charts
• USD/MXN five-day decline rebounds off technical help
• Danger for topside exhaustion forward of 23.1089 – key near-term help 22.1495

The US Greenback rallied greater than 1% towards the Mexican Peso for the reason that begin of the week with USD/MXN rebounding off confluence technical help early within the session. The reversal threatens a bigger restoration however retains worth with the confines of the broader downtrend and we’re searching for a response simply larger. These are the up to date targets and invalidation ranges that matter on the USD/MXN technical worth charts. Evaluation my newest Weekly Technique Webinar for an in-depth breakdown of this Peso commerce setup and extra.

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Mexican Peso Worth Chart – USD/MXN Every day

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

Technical Outlook: In my final Mexican Peso Worth Outlook we famous that the worth advance was, “testing resistance on the month-to-month vary highs,” with the 38.2% retracement of the March decline simply larger at 23.1089. A breach above the June opening-range highs tried to breach this threshold for 2 consecutive days however failed to shut above. A decline of greater than 4% off that mark rebounded early this week off a key help zone at 22.0376/1503 – a area outlined by the 2017 swing excessive, the 61.8% retracement of the June vary and the 50% retracement of the broader yearly vary.

A break / shut beneath is required to mark resumption in the direction of the June lows and extra vital Fibonacci help confluence at 21.2317/2941. Every day resistance stands at 22.8179 backed by the July open at 22.9773– broader bearish invalidation stays regular at 23.1089.

Mexican Peso Worth Chart – USD/MXN 120min

Notes: A closer have a look at Peso worth motion reveals USD/MXN buying and selling inside the confines of a descending pitchfork formation – observe that the median-line converged on the June open / 61.8% retracement at 22.1348/1495 into the open of the week. Preliminary resistance now stands at 22.6908 backed by 22.8176 & 22.9425 – each ranges of curiosity for attainable topside exhaustion IF reached. Preliminary help rests with the weekly open / 50% retracement at 22.3435/3853 with a break of the weekly opening vary low wanted to shift the main target decrease once more.

Backside line: The USD/MXN rebounded off key help early within the week and the restoration could have extra upside near-term. From a buying and selling standpoint, look to cut back long-exposure / increase protecting stops on a stretch towards the higher parallel – be looking out for attainable topside exhaustion close to downtrend resistance IF worth is certainly heading decrease.

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