Peso Losses to Accelerate - USD/MXN Targets Critical Resistance
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Talking Points
- USDMXN testing key pivot resistance- breach to mark larger recovery
- Updated targets & invalidation levels
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USDMXN Daily
Technical Outlook: USD/MXN rebounded off a sliding parallel extending off the 11/3 high this week with the advance failing at confluence resistance at 19.2997- a region defined by the 23.6% retracement of the 2017 range, the lower parallel of the descending pitchfork (blue) & former trendline support extending off the late 2015 lows (red).
A breach above / close above this zone is needed to validate a near-term reversal in the pair with such a scenario targeting 19.5458/6402 backed by 19.9220 & 20.2456 - both areas of interest for possible exhaustion / short-entries. Interim support rests with the yearly low-day close at 18.5750 with a break lower eyeing key support at 18.0045-18.15860 .
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USDMXN 240min
Notes: A closer look at price action further highlights the reversal off this this near-term resistance confluence with the pullback now testing initial support at 18.8931 . From a trading standpoint, I'll favor fading near-term weakness while above the 18.5750 with a breach higher eyeing subsequent topside objectives- Ultimately I'd be looking to sell a larger-scale recovery towards structural resistance. Keep in mind we have U.S. 1Q GDP & Core PCE figures on tap tomorrow morning.
Check out our 2Q projections in our Free DailyFX Trading Forecasts .
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Relevant Data Releases
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- Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Clic k H ere to be added to his email distribution list .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
