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″.
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