USD/MXN: Just a pause before the next drop?
|USD/MXN has been in a downtrend since the start of the year, when we also called for an important top as Trump took office. So far, we can see a clear five-wave structure with lower highs and lower swing lows, confirming a strong bearish trend that may not be over yet. Since impulses develop in five waves, it looks like we are currently in a fourth-wave counter-trend rally, as shown on the updated wave structure. This move could still extend slightly higher, possibly toward the previous fourth-wave region near 18.96 followed by second resistance around 19.33, which aligns with the 38.2% retracement.
If this view is correct, the key level on the downside for this entire impulsive cycle would be around 17.62.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.