On the intraday chart of USDMXN, we are observing a nice impulsive 5 wave fall and its contra-trend movement labeled as A-B and C, that could already be completed, meaning that more weakness could follow. Looks like that formal wave 4 at 18.7031 and 38.2 Fibonacci ratio became a resistance zone and a possible new turning point lower. www.ew-forecast.com @ewforecast
USDMXN its giving a lot of signals that cant go higher and a break of the channel and triangle on the downside looks perfect for a short trade.
Playing the correction ABC with the CD leg of the emerging Shark pattern
The last move in the downtrend is about to begin.
Intraday structure of USDMXN suggest that a temporary top can be in place around 18.218, as price made a nice five wave move to the upside, from recent lows at 17.053. Therefore as we know, after every five wave move a minimum three wave retracement usually follows, as in our case recent broken channel support line could indicate a temporary bearish run, with red...
4 hour Rsi approaching overbought. 1 hour is already overbought. USDMxn also approaching major resistance at 17.94ish. I think it will tap that resistance line then run down for a beautiful end of week trade. I have my sell order set at 17.9 and alerts set for a break of either line. If it breaks the trend before it hits my sell order I will handle it manually.
A number of trade possibilities on this symmetric triangle. I personally would be bearish USD fundamentally, so look for downside breaks to trigger an extended move down. Breaks to the upside will also provide excellent opportunities for a short-term trade.