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USD/MXN 1H Chart: Channel DownUSD/MXN 1H Chart: Channel Down The American Dollar was trading against the Mexican Peso in a medium-term ascending channel. However, after a data release on the US CPI the buck entered into a seven hour downfall and lost 1.3% in value. Such depreciation led to appearance of the current short-term descending channel with two reaction highs and once reaction low. Since the pattern has not formed completely, the currency pair is expected to continue to move within it at least until the weekly S1 at 17.7187. Afterwards, a rebound might happen. On the other hand, by that time the rate might experience additional pressure from the approached 55-hour SMA, which could impede the climb upstairs. Finally, there is a need to take into account that due to narrowness of the channel it might be prematurely distorted by any news coming from North America.
by UnknownUnicorn890690
USD/MXN 1H Chart: Channel UpUSD/MXN 1H Chart: Channel Up The American Dollar is appreciating against the Mexican Peso in a medium-term and short-term ascending channels. At the moment, the channel consists of three reaction highs and three reaction lows and, thus, might be cease to exist in the upcoming days. The fact that the currency pair is gradually approaching to the lower trend-line of the senior channel indicates on validity of such scenario. The slip to the bottom seems unlikely because the rate proved to be quite sensitive to the 55- and 100-hour SMAs, which are moving along the pattern. A number of technical indicators also vote for an ascending movement. On the other hand, 60% of traders remain bearish on this currency pair. In addition, there is a need to take into account an impact from a release of the US macroeconomic data today and tomorrow.
by UnknownUnicorn890690