USD/MXN risk of more downside after complex correction
|The chart below shows the USD/MXN has formed and broken the ending diagonal pattern but has also broken below the channel support of the current uptrend. We can expect more downside pressure from here going forward once we retest channel support as resistance.
The current count has the move lower as a wave 5 pushing lower to complete a larger degree correction. Target levels to watch out for lower are 22.00000 and 21.00000. Once we reach 21.00000 we would have met the minimum target level for a wave 5 to be complete. We can start looking higher from this point as the uptrend should continue.
A key takeaway from the chart below is that the move lower has been slow, so we need to be careful of the move higher coming up in the larger degree. If we see a break of 23.27000 we can safely assume the downtrend is over and we are pushing higher long term.
Res: 23.27407; 23.78286; 24.40666
Sup:22.00000; 21.00000; 21.50000
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