USD/MXN is trading along the lines of a long-term descending wedge. Following a test of its upper boundary mid-March, the pair reversed to the downside and has since reached the southern boundary of this pattern.
Despite trying to initiate a new wave down last week, the Greenback reversed and returned to the 18.05 area late on Friday.
The rate seems to be oversold; thus, a correction north is the most likely scenario during the following two sessions. The most probable upside target is the 100– and 200-hour SMAs, the weekly PP and the upper boundary of a two-month channel down circa 18.15.
Bulls could lack the necessary strength to surpass this resistance cluster at this point and thus allow for the resumption of the bearish sentiment.
Despite trying to initiate a new wave down last week, the Greenback reversed and returned to the 18.05 area late on Friday.
The rate seems to be oversold; thus, a correction north is the most likely scenario during the following two sessions. The most probable upside target is the 100– and 200-hour SMAs, the weekly PP and the upper boundary of a two-month channel down circa 18.15.
Bulls could lack the necessary strength to surpass this resistance cluster at this point and thus allow for the resumption of the bearish sentiment.