USD/MXN Responds to Wall of Resistance
- USDMXN carves weekly opening range just below resistance
- Updated targets & invalidation levels
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Technical Outlook: USDMXN broke below trendline support extending off the 2015 lows back in March with the slope offering resistance ever since. The pair turned from confluence slope resistance this week with the pullback now eyeing initial support at the weekly open / April trendline ~18.8931with a break below the monthly open 18.7885 needed to mark resumption of the broader downtrend. Initial resistance stands at 19.2997backed by broader bearish invalidation into 19.6402.
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Notes:Momentum divergence into this resistance zone was a hallmark for the near-term pullback which is now approaching initial support. Look for a break of this range between 18.8931-19.2996 for guidance on our immediate directional bias with a breach higher towards key resistance to ultimately offer more favorable short entries. From a trading standpoint, while within the confines of this range I’ll still favor selling rallies.
See how shifts in retail positioning are effecting market trends.
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- Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.