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USD/MXN Elliott Wave
Last week the USD/MXN pair has finished the development of the wave 1 and 2 (coloured blue) of the bigger (1) wave (coloured green). Presently we can observe the development of the wave 3 (coloured blue). During the Friday's European session the USD/MXN pair has started the descending movement towards the 13.140 level (100EMA). Therefore, during the New York session we could observe the price below 200EMA support. We can consider this move as the end of wave 1 of the bigger 3 wave. Today during the Asian session the USD/MXN pair started a bullish mood and we could observe the price back to 100EMA resistance around 13.140.We are expecting to see end of wave 2 of the bigger wave 3 around 13.195 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (13.287-13.047-13.265). Take Profit 1 at 13.033(100% of wave 1) and Take Profit 2 at 12.886 (161.8% of wave 1). As Stop Loss the invalidation point at 13.287 can be used.
Support and Resistance levels
(S3) 12.9989 (S2) 13.0526 (S1) 13.0858 (PP) 13.1395 (R1) 13.1932 (R2) 13.2264 (R3) 13.2801
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short positions at level 13.140 with Stop Loss at 13.287, Take Profit 1 at 13.033 and Take Profit 2 at 12.886 are recommended.
