USD/MXN: All about the PESO

Mthokozisi Mpofu Knars Capital

The chart below shows USDMXN has been in a bullish move since 30th of May 2022. We believe the move lower completed on the 29th of May 2022, labelled as wave (y). Since, we have moved higher in an impulsive manner.

We have labelled the move higher in five waves ended on 14th of July 2022. We had a clear correction lower marked in three waves abc lower. The wave c retracement has reached the 61.8 Fibonacci level is marked below - and we believe a reaction is imminent from this level.

A clear five wave move from 19.80000 with a minor retracement will give a prime buying opportunity with a stop loss below that current swing low targeting new high's.

No key news events to look out for this week.

Res: 19.95000; 20.05000; 20.20000

Sup: 19.83520; 19.80000; 19.75000

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

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