USD/MXN maintains a multi-year bullish continuation pattern and is expected to move into a high level range, according to analysts at Credit Suisse who expect the pair to reach the 26.00 level after breaching the initial resistance seen at 24.91.
Key quotes
“USD/MXN also maintains a large multi-year bullish ‘triangle’ continuation pattern despite the correction from the current YTD highs at 25.7849. The market has subsequently managed to hold at the 50% retracement of the 2017/2020 surge at 21.6176/4647. We thus are biased towards the development of a broad range during Q3, with resistance initially at 24.91, above which would suggest a fresh test of the current high and psychological barrier at 25.78/26.00. We expect this area to hold if reached for a move back lower and continuation of the bread range.”
“In contrast, below 21.6176/4647 and then the 200-day average at 20.9224 would allow a deeper move lower, with the next support then seen at 20.6341, the 61.8% retracement.”
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