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USDMXN Daily

USD/MXN Daily Chart

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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USDMXN 240min

USD/MXN 240min Chart

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.

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- Written by Michael Boutros, Currency Strategist with DailyFX

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