• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

USD/MXN – US Dollar Coiling Up vs Peso, Heading for a Breakout

Forex Tips by Forex Tips
July 24, 2020
in Technical Analysis
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


USD/MXN Highlights:

  • USD/MXN wedge formation to lead to a breakout
  • Trend-line on top-side, price support on the bottom-side

USD/MXN wedge formation to lead to a breakout

USD/MXN has been coiling up for the duration of the month as it finds little to sway it in either direction, but that is set to change as the descending wedge is near its breaking point. Should we see a resolution higher, then the trend-line off the April spike-high will need to be broken.

In the event of a bullish break the first targeted area of resistance comes in around 23.20, where a low pivot from April and high pivot from June come in. Beyond there another area of resistance resides around 23.60.

We could see further upside beyond those levels, but those would be the first set of challenges for the pair. To really boost USD higher vs EM currencies it is likely a risk-off environment will be needed.

Looking lower, there is a solid floor around 22.30/15 that has kept the wedge building. A breakdown below support would be in-line with the general trend off the April high, and position USD/MXN for a test of the June low at 21.46 and the 200-day MA at 21.08.

All-in-all, a breakout is in the works and should have a move developing that traders can latch on to. One thing to beware of with these types of formations is the potential for an initial false break in one direction that results in a reversal in the sustainable direction. These can end up as causing even larger moves as the market is effectively caught leaning the wrong way on the false break.

USD Forecast

USD Forecast

Recommended by Paul Robinson

Check out the Q3 USD Forecast

USD/MXN Daily Chart (wedge pattern to break)

USD/MXN daily chart

USD/MXN Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX





Source link

Share76Tweet47

Related Posts

GBP/USD, EUR/GBP Wedge Patterns in Focus

by Forex Tips
January 24, 2021
0

GBP/USD, EUR/GBP Technical Forecast – Talking PointsGBP/USD rally in question as prices test Rising Wedge trendline resistance Falling Wedge...

FTSE 100, DAX 30 Technical Forecast For The Week Ahead

FTSE 100, DAX 30 Technical Forecast For The Week Ahead

by Forex Tips
January 23, 2021
0

FTSE 100, DAX Analysis and NewsFTSE 100 | Short-Term Pullback, Long Term PositiveDAX | Narrow Range Raises Breakout RiskFTSE...

Key AUD/USD, AUD/NZD Levels to Watch

by Forex Tips
January 23, 2021
0

Australian Dollar Analysis and Talking PointsAUD/USD | Pullbacks Finding SupportAUD/NZD | Rich Levels Relative to SpreadsA bout of risk...

EUR/USD Pulls Back from July High as EU Splits COVID Recovery Fund

EUR/USD May Dip More Before Finding Support

by Forex Tips
January 23, 2021
0

EUR/USD Technical OutlookEUR/USD still at risk of trading lower in the near-termFurther weakness will bring May trend-line into focusOverall,...

Recovery Stalls Below Record High- XAU/USD Levels

Gold Weekly Reversal- Bear Market Rally or More?

by Forex Tips
January 23, 2021
0

Gold Technical Price Outlook: XAU/USD Weekly Trade Levels Gold prices are poised to snap a two-week losing streak with...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.