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

USDMXN was down since March 2020 highs and we see it as a completed five-wave drop which confirms a bearish reversal. We know that in Elliott Wave theory, after every five waves, a three-wave correction follows, so with a current jump from the beginning of 2021, seems like it's unfolding an A)-B)-C) the corrective rally, where waves B) and C) are still missing.

Technically speaking, the price usually retraces back to the previous wave IV, so be aware of a bigger recovery up to 22-23 resistance area before we may see a bearish continuation.