News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
USD/MXN Achieves Bullish Breakout, USD/ZAR Tests New Highs

USD/MXN Achieves Bullish Breakout, USD/ZAR Tests New Highs

Dimitri Zabelin, Analyst

US Dollar, Mexican Peso, South African Rand, USD/MXN, USD/ZAR – TALKING POINTS

  • USD/MXN could be on verge of bullish spike after key technical levels broke
  • Pennant continuation pattern suggests USD/MXN may rise to around 30.780
  • USD/ZAR tests new highs as US Dollar prevails in virus-shaken environment

US Dollar Outlook vs Mexican Peso

USD/MXN may be on the verge of a bullish spike after clearing the top layer of a narrowing congestive period formed after its 30 percent rise in mid-March. The pair appears to be in the last stages of completing a short-term continuation pattern known as a Pennant. If the break is met with follow-through, the ascent could theoretically be proportional to the one that brought USD/MXN to the digestive interim.

USD/MXN - Daily Chart

Chart showing USD/MXN

USD/MXN chart created using TradingView

This could lead the USD/MXN exchange rate to test as high as 30.8700, and the monthly chart supports the notion of an underlying bullish bias. Looking at a wider timeframe shows that the daily chart is a reflection of a multi-year continuation pattern that strongly resembles a Pennant. In this view, the breakout has already occurred, but a resurgent bullish drive – with accommodating fundamentals – could reinforce the pair’s ascent.

USD/MXN - Monthly Chart

Chart showing USD/MXN

USD/MXN chart created using TradingView

To get more updates on USD/MXN and what fundamental forces are pushing the pair higher, be sure to follow me on Twitter @ZabelinDimitri.

US Dollar Outlook vs South African Rand

USD/ZAR is testing new highs as it flirts with puncturing the lower tier of the 19.0340-19.3453 resistance range. While it may not re-mount the former uptrend (gold channel), breaking above the upper layer with follow-through could reinforce bullish sentiment and push the pair higher. Conversely if it retreats, USD/ZAR may retest support at 17.8289.

USD/ZAR – Daily Chart

Chart showing USD/ZAR

USD/ZAR chart created using TradingView


--- Written by Dimitri Zabelin, Currency Analyst for

To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.