USD/MXN 1H Chart: Pair expected to surge
USD/MXN has been confined in a nine-month ascending channel. The pair tested its bottom boundary early in February and has since demonstrated a slight up-trend.
Moreover, the US Dollar is likewise trading in a medium-term channel valid since mid-December. In line with this pattern, the pair should push below the senior channel and approach 18.00. However, it seems that the latter has taken the upper hand, thus suggesting that the current upward movement might continue within the following sessions, as well. In order to confirm this scenario, the Greenback has to breach the junior channel in the 18.70 area. A possible upside target is 18.95 where the 38.20% Fibo retracement and the weekly R2 are located.
In the short term, however, the rate is likely to enter a minor period of decline down to the 55– and 100-hour SMAs in order to gain some momentum before the aforementioned climb.
Moreover, the US Dollar is likewise trading in a medium-term channel valid since mid-December. In line with this pattern, the pair should push below the senior channel and approach 18.00. However, it seems that the latter has taken the upper hand, thus suggesting that the current upward movement might continue within the following sessions, as well. In order to confirm this scenario, the Greenback has to breach the junior channel in the 18.70 area. A possible upside target is 18.95 where the 38.20% Fibo retracement and the weekly R2 are located.
In the short term, however, the rate is likely to enter a minor period of decline down to the 55– and 100-hour SMAs in order to gain some momentum before the aforementioned climb.