USD/MXN 1H Chart: Trades near weekly S2
The American Dollar has been losing value against the Mexican Peso in a small descending channel over the last two weeks. However, two days ago this pattern started to transform into the falling wedge formation amid the pressure from 55- and 100-hour SMAs. As downside momentum from the yesterday’s FOMC Meeting Minutes publication came to an end, the breakout from the pattern is likely to happen already by the end of this trading session. In this sense, the weekly S2 located at the 18.60 level might be used as a perfect barrier for the upcoming turnaround. As there are no American fundamental data releases scheduled for today, there is little chance that the buck will sank even deeper. Even though market sentiment is 68% bullish, the rate is expected to continue moving to the bottom edge of dominant channel up.
The American Dollar has been losing value against the Mexican Peso in a small descending channel over the last two weeks. However, two days ago this pattern started to transform into the falling wedge formation amid the pressure from 55- and 100-hour SMAs. As downside momentum from the yesterday’s FOMC Meeting Minutes publication came to an end, the breakout from the pattern is likely to happen already by the end of this trading session. In this sense, the weekly S2 located at the 18.60 level might be used as a perfect barrier for the upcoming turnaround. As there are no American fundamental data releases scheduled for today, there is little chance that the buck will sank even deeper. Even though market sentiment is 68% bullish, the rate is expected to continue moving to the bottom edge of dominant channel up.
