Coronavirus in South America Can Send MXN Lower - Elliott wave analysis

Gregor Horvat Wavetraders

Hi traders,

USDMXN is making a corrective set-back after five waves up completed wave A) near 19.26 from where we saw one leg of a pullback so far. But we know that pullbacks are made by three waves, so we can assume that higher degree wave B) is still in play and may actually fill the gap around 18.88 which at the same time can be very nice support for a new turn up. Corona-virus had also been found in south America, meaning it may not be far away from Mexico so any bad news about corona-virus spread may easily cause more damage to MXN which is already anticipate by a technical outlook.

USDMXN, daily

USDMXN, 4h

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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