USD/MXN 1H Chart: Decline still in sight
The US Dollar has been depreciating gradually against the Mexican Peso for two weeks now. This movement has been bounded in a descending channel.
As apparant on the chart, the US Dollar has reached the upper boundary of this pattern. In addition, the solid bullish momentum which prevailed yesterday has allayed today, thus sending the pair for a minor consolidation near the upper boundary. These two factors allow to think that a reversal is due in the nearest hour. This should be confirmed by a breakout of the 55-, 100– and 200-hour SMAs, as well the weekly PP at 18.90.
Meanwhile, technical indicators demonstrate that there is still some upside potential in the market before bears are able to prevail in the market again.
As apparant on the chart, the US Dollar has reached the upper boundary of this pattern. In addition, the solid bullish momentum which prevailed yesterday has allayed today, thus sending the pair for a minor consolidation near the upper boundary. These two factors allow to think that a reversal is due in the nearest hour. This should be confirmed by a breakout of the 55-, 100– and 200-hour SMAs, as well the weekly PP at 18.90.
Meanwhile, technical indicators demonstrate that there is still some upside potential in the market before bears are able to prevail in the market again.
Currently, the exchange rate is testing the upper boundary of the short term descending channel.
A breakout north is likely to occur in the nearest future. An important level to look out for is the weekly R2 at the 19.27 mark.