Good day traders! Since my last update on the USD/MXN price has continued trading sideways in what could be the final stages of either an ascending or symmetrical triangle. The formation of higher lows (green arrows) supports the triangle idea and I am currently thinking that price could break above April’s high before a deeper correction lower might follow.
Should price break above the 25.0000 level, then we could see a quick move above the April high at 25.7782 but I would be wary of a corrective phase taking hold soon after this scenario.
Alternatively, should price break below the 23.6400 level, then the corrective phase that I have been waiting for might have started, which should see USD/MXN drop towards the 23.0000 level at the minimum.
It will be a wise idea to wait for confirmation of a downward move first before larger downside targets can be planned.
More updates to follow.
Bias: Short-term bullish, intermediate-term bearish during corrective phase
Potential targets: 25.7782 to the upside and 23.0000 to the downside (depending on which direction breaks out of triangle formation
Until next time, have a great weekend and stay safe!