USD/MXN is setting itself for a serious breakout in volatility, and naturally with it a big value strikes as soon as the breakout types itself out, clear or not. On the finish of 2019, as USD/MXN narrowed in the direction of the apex of a three-year symmetrical triangle it began to interrupt down, however not absolutely affirm the breach.
USD/MXN Weekly Chart (On the cusp of a giant vol breakout)
The long-term development, and I do imply long-term (as in 40+ years), is up, which means that the decision might nonetheless be on the upside. Nonetheless, that doesn’t imply we received’t see the bearish break in December grows legs first earlier than reversing again greater. These patterns might be tough at first.
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—Written by Paul Robinson, Market Analyst
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