Friday, July 3, 2020 8:45 AM EDT
USD/MXN – SHORT-TERM BEARISH SEQUENCE DEVELOPING
USD/MXN is currently trapped between a range of technical indicators and further losses may be likely if current price action continues to play out. The supportive short-term uptrend off the June low has now been broken and opened below, while the pair have also dropped through both the 20- and 50-day moving averages, adding the bearish sentiment. In addition, this week the pair have made an unbroken series of lower highs, adding to the prevailing negative sentiment. Below, there are a cluster of recent lows that may provide short-term support before the 50% Fibonacci retracement level of 22.153 comes into play. Below here, 21.86 becomes the next area of interest.
To regain a bullish bias, USD/MXN needs to reclaim both the moving averages, open and consolidate above the short-term uptrend and take out Monday’s high at 23.24.
USD/MXN DAILY PRICE CHART (DECEMBER 2019 – JULY 3, 2020)
(Click on image to enlarge)
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