USD/MXN found a high for a higher degree wave V at the 25.775 level, and started turning lower. We are now observing a minimum, three-wave bearish reversal underway, where price is specifically unfolding a sub-wave IV of a wave C) or III). Sub-wave IV can unfold as an Elliott wave triangle correction, so be aware of a one more push lower, towards 20.0 level, once it fully develops.
USD/MXN, daily
Below you can check our new video about the USD/MXN.
(Video lenght 00:05:32)
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to E, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
Symmetrical triangle in downtrend:
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