USD/MXN Technical Analysis: Pair is charting a bull continuation pattern

• The USD/MXN pair is charting a bull flag, a bull continuation pattern, on the technical charts. The pattern is more clearly visible on the 4-hour chart.
• An upside break, that is, a move above 19.01 (flag resistance) would signal a continuation of the rally from the Aug. 8 low of 18.41 and would open up upside toward 19.98 (target as per the measured height method).
• A downside break will likely embolden the bears and allow a drop to the recent low of 18.41.

4-hour chart

Spot Rate: 18.85

Daily High: 18.85

Daily Low: 18.75

Trend: Bullish

Resistance

R1: 19.01 (flag resistance)

R2: 19.27 (100-day moving average)

R3: 19.37 (Aug. 13 high)

Support

S1: 18.75 (daily low)

S2: 18.60 (previous day’s low)

S3: 18.49 (July 30 low)