Good day traders! My previous trade idea on the USD/MXN was completely invalidated after price broke out of my proposed triangle formation to the upside. That being said, USD/MXN might be nearing a top after price broke above the January 2017 high which was a 200% extension level of the first wave higher that started back in 2008.
It is also possible to count 3-waves higher from the 2008 low, which could mean that a 4th -wave correction lower might follow.
If not from the current high, then price could still trade into the 23.000 – 24.000 price zone before a decline starts.
Another interesting phenomenon that price might be nearing a high is the presence of that long-term triangle formation, which often appears before an important high, especially when they form on a large timeframe like the monthly or weekly.
Attempting a short position on the USD/MXN will require that we wait for a weekly or monthly reversal candlestick pattern first before any entry can be planned.
More updates to follow.
Bias: Bearish after reversal pattern
Potential Resistance: 23.0000 – 24.0000
Targets: to be confirmed
Until next time, have a great weekend!