The US Dollar is trading in two opposing channels against the Mexican Peso. The lower boundary of the senior channel was tested last week when the pair bounced off the 18.35 mark.
As apparent on the chart, the Greenback has since formed a neat ascending channel towards the upper boundary of the medium-term channel down. It is likely that the pair edges higher within the following weeks, as it seems that an upside breakout could be due soon. This scenario would allow the pair to move in line with the most senior pattern.
In the short-term, however, the US Dollar is expected to push lower down to the 61.8% Fibo retracement at 18.48 prior to accelerating against its Mexican counterpart. The nearest resistance is provided by the 55-, 100– and 200-hour SMAs in the 18.62 area.
As apparent on the chart, the Greenback has since formed a neat ascending channel towards the upper boundary of the medium-term channel down. It is likely that the pair edges higher within the following weeks, as it seems that an upside breakout could be due soon. This scenario would allow the pair to move in line with the most senior pattern.
In the short-term, however, the US Dollar is expected to push lower down to the 61.8% Fibo retracement at 18.48 prior to accelerating against its Mexican counterpart. The nearest resistance is provided by the 55-, 100– and 200-hour SMAs in the 18.62 area.