USD/MXN: Wall Of Resistance Holds, Now What?

Forex Trading News & Analysis • May 24, 2017 at 6:08 PM EDT

USDMXN has been testing support at the 2017 low-day close at18.5751 for the past few days after failing at key resistance noted earlier this month.

Talking Points

USD/MXN testing key daily support- Price remains vulnerable sub 18.7885
Updated targets & invalidation levels

USD/MXN Daily

USD/MXN Daily Chart

Technical Outlook: USDMXN has been testing support at the 2017 low-day close at 18.5751 for the past few days after failing at key resistance noted earlier this month. Watch today’s close with a move below this level targeting the lower parallel around 18.30 & a key support zone at 18.0045-18.1586.

USD/MXN 240min

USD/MXN 240min Chart

Notes: A closer look at price action highlights interim resistance at 18.7837/85 where the monthly open converges on the 61.8% retracement of the April advance. We’ll reserve this level as our near-term bearish invalidation with a break lower targeting subsequent support objectives at 18.4682 & 18.3000. Keep in mind we get the release of the minutes from the latest FOMC policy decision later today and unemployment data out of Mexico on Friday.

Relevant Data Releases

USD/MXN Docket

Disclosure:

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