Technical outlook:
USDMXN slipped further through 20.00 intraday on Thursday, barely testing Wednesday lows carved below 20.00. The currency is moving in line with near-term projections up to the 19.80-90 zone. Bears will be poised to still hold prices below 20.70 to keep the structure intact for the time being.
USDMXN is unfolding a diagonal pattern since registering highs around 22.15. If the diagonal is complete around 19.40, bulls are going to remain in control from here on and hold prices above 14.40. On the flip side, if prices drop below 19.70, a high probability remains for yet another low below 19.40 before the diagonal is complete.
USDMXN might have carved its lower degree upswing between 19.40 and 20.70 as seen on the daily chart. Prices are pulling back at the moment and could find support at around the 19.80-90 zone, which is also the Fibonacci 0.618 retracement of the above upswing. If the proposed structure holds well, prices will rally towards 21.50 resistance in the medium term.
Trading plan:
Potential drop through 19.80 against 20.70 in rhe near term.
Good luck!
