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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional dips in the pair are seen supported around 19.80/60.

Key Quotes

USD/MXN has rallied sharply higher, the rally faltered just ahead of the 2017-2018 resistance line at 20.67. The market has peak at 20.4720 and is reacting quickly lower. Near term dips expected to find support in the 19.80-19.60 band and recover from here”.

“Dips lower should remain contained by the 55 and 200 day ma at 19.12/06 as this guards the 18.4487/18.3090 support zone, made up of the November low and the January and February 2017 as well as the August 2018 troughs”.

“Please note longer term that market has been building a huge triangle since 2015. This will complete on a weekly close above 20.67 and trigger a move to above the 22.04 high. Initial resistance is the 2018 high at 20.96″.