USD/MXN – US Greenback Shreds Mexican Peso, Main Reversal Coming?
- USD/MXN pops again strongly on USD power, rise in uncertainty
- The trail continues to be total decrease, however a reversal may shake that outlook
USD/MXN stays very heavy, prepared for brand new cycle lows
Yesterday, USD/MXN popped again strongly to its highest ranges for the reason that starting of the month with the mixture of a powerful USD and promoting in shares. It’s nonetheless mired in a uneven downtrend, however given the speed at which it got here again it may mark the start of a reversal.
Final week, I used to be sticking with a typically comfortable outlook, however did have this to say in regards to the upside: “To dampen the bearish outlook, a powerful rally (possible pushed by risk-off) is required to push USD/MXN a minimum of above 18.97. This gained’t flip the image broadly bullish given value will nonetheless be exterior the wedge, however it’ll assist construct the case for additional upside, or on the very least hold shorts at bay.”
With 18.97 across the bend, and the trend-line from the highest of the August transfer…