Today we will talk about USD/MXN pair, its price action from a technical point of view, and wave structure from Elliott Wave perspective.

USDMXN is trading sideways for a long time, but this 2-year consolidation can be slowly coming to an end because we can already see a completed big bearish triangle pattern in wave B.

(Click on image to enlarge)

As you can see, after that final wave (E) of B, USD/MXN is ready for a bearish resumption within wave C. Wave C is a motive wave, which should be completed by a five-wave cycle of the lower degree. And, we can see it forming a nice bearish setup formation with waves (1) and a current corrective rally in wave (2) that can cause a sell-off into wave (3) of a new five-wave bearish impulsive cycle.

Technically speaking, the ideal resistance for wave (2) is the 20.20 - 20.30 area, but keep in mind that bearish confirmation is only below 19.73 region.

For a more detailed view, check the video analysis below:

Video Length: 00:11:32

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