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 breakdown units weekly opening-range slightly below key pivot zone at 21.2316/2942
- Key near-term help 20.6789 – Bearish invalidation at monthly-open resistance
The US Dollar is down greater than 0.4% towards the Mexican Peso into the beginning of the week after breaking under a key pivot zone on Friday. A well-defined descending technical sample leaves USD/MXN susceptible to additional losses near-term with the instant concentrate on a break of the weekly opening-range for steerage. These are the up to date targets and invalidation ranges that matter on the USD/MXN technical worth charts. Review my latest Strategy Webinar for an in-depth breakdown of this Peso setup and extra.
( 12:10 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Mexican Peso Value Chart – USD/MXN Every day
Technical Outlook: In my final Mexican Peso Price Outlook we famous that the USD/MXN sell-off was, “testing a break of a key pivot zone we’ve been monitoring at 21.2316/2942 – from a buying and selling standpoint, the chance stays tilted to the draw back whereas inside this formation.” Value slipped under this threshold on Friday with the USD/MXN testing this zone as resistance over the previous few days.
Every day support aims stay unchanged on the 1.618% Fibonacci extension of the decline off the June highs at 20.6788 backed by the 78.6% retracement of the yearly vary at 20.0752. A pivot / shut again above 21.2942 would danger a bigger rebound in direction of trendline resistance with bearish invalidation now lowered to the target October open at 22.0895.
Mexican Peso Value Chart – USD/MXN 120min
Notes: A closer take a look at Peso worth motion reveals USD/MXN buying and selling inside the confines of an descending pitchfork formation extending off the late-September highs with the pair rebounding off median-line help on Monday. The weekly opening-range is ready slightly below the 21.2316-2942resistance zone and we’re searching for the break to supply steerage. A break decrease retains the concentrate on the September low at 20.8377 and 20.6788. A topside breach of the weekly vary would danger a bigger worth restoration with such a state of affairs exposing the 61.8% retracement at 21.5489 and each day slope resistance close to ~21.8500.
Recommended by Michael Boutros
Download Our Latest Quarterly US Dollar Price Forecasts!
Backside line: The USD/MXN has damaged under a key pivot zone however the follow-though appears to be like a bit drained right here. Search for topside exhaustion whereas inside this near-term formation with a break decrease right here retaining the main target aims into the decrease parallels. Finally a bigger sell-off might supply extra favorable alternatives with a breach above the month-to-month open nonetheless wanted to shift the broader focus increased once more.
For an entire breakdown of Michael’s buying and selling technique, evaluate his Foundations of Technical Analysis series on Building a Trading Strategy
Key US / Mexico Knowledge Releases
Economic Calendar – newest financial developments and upcoming occasion danger.
Lively Technical Setups
— Written by Michael Boutros, Technical Strategist with DailyFX
Comply with Michael on Twitter @MBForex