USD/MXN 4H Chart: Pair to break out soon
Following a test of the senior channel near 19.90 late in December 2017, the US Dollar began depreciating substantially against its Mexican counterpart. This strong decline allayed mid-January when the pair began a period of consolidation.
As apparent on the chart, this movement sideways still continues to prevail in the market. The pair has likewise formed a long-term triangle with the 18.31 level as the bottom and a downward-sloping trend-line as the top. This pattern will soon reach its maturity, thus a breakout either direction should occur soon.
The general direction during the following weeks should be north in line with the senior channel. However, it is yet to be seen if it begins from the 18.31 area or the bottom boundary of the senior channel located near 18.15.
Meanwhile, the upper line of the triangle is reinforced by the 55-, 100– and 200-period SMAs and the 23.60% Fibo retracement circa 18.70. The pair needs to surpass this resistance in order to go for the aforementioned surge.
As apparent on the chart, this movement sideways still continues to prevail in the market. The pair has likewise formed a long-term triangle with the 18.31 level as the bottom and a downward-sloping trend-line as the top. This pattern will soon reach its maturity, thus a breakout either direction should occur soon.
The general direction during the following weeks should be north in line with the senior channel. However, it is yet to be seen if it begins from the 18.31 area or the bottom boundary of the senior channel located near 18.15.
Meanwhile, the upper line of the triangle is reinforced by the 55-, 100– and 200-period SMAs and the 23.60% Fibo retracement circa 18.70. The pair needs to surpass this resistance in order to go for the aforementioned surge.