It has been a strong rally in the pair, so let's try to jump on it.
RSI have fallen pretty fast, which is a bullish sign.
We are testing crossover trend line and are in a wedge.
The break of the A) support clear the possibility of an expanded flat with a C) wave forming perhaps an ending diagonal, the fibo targets for the C Wave are between 12 and 11.60 roughly
The mexican peso is poised to weakening due the Elliott Wave pattern that seems in place.
Although is not really clear the primary (black) count, even if the 12.5 breaks down still the alternative posibility of an expanded flat (red count).
Fundamentally shows also weak if USA decelerates faster than expected and if this leads to a downward movement in oil prices...
USDMXN Neutral, August5th. 10:00 pm. Spot 13.15
As this chart shows, the USDMXN pair is testing the two supports.
First, the rates now reached the support formed from May - August 2010. The market formed a triple top and failed to break through the resistance. It should now form strong support. The second support is the trend line formed during Oct 2011 and Apr...
