The USD/MXN pair has been moving within a very wide channel where an upper trend line was rejected on December 14. Following a sharp fall resulted in the ascending trend line breakout and signalling the weakness in the USD/MXN pair.
After the breakout, the price returned back to 61.8% Fibonacci retracement level applied to the 1st of December low and 14th of December high. So far all the fact supporting an idea of a downward correction continuation.
Consider selling USD/MXN, while the price is near R1 (17.25) targeting S1 (16.85), which is 61.8% Fibonacci retracement level applied to a high reached on December 14 and low hit on December 16. Stop loss should be set well above the most recent high reached on December 24.
Support: 16.85
Resistance: 17.25
