The USD/MXN pair has been moving within a very wide channel where an upper trend line was rejected on December 14. Following a sharp fall
resulted in the ascending trend line breakout and signalling the weakness in the USD/MXN pair.
After the breakout, the price returned back to 61.8%
Fibonacci retracement level applied to the 1st of December low and 14th of
December high. So far all the fact supporting an idea of a downward correction continuation.
Consider selling USD/MXN, while the price is near R1 (17.25)
targeting S1 (16.85), which is 61.8% Fibonacci retracement level applied to a high reached on December 14 and low hit on December 16. Stop loss should be set well above
the most recent high reached on December 24.
The material has been provided by InstaForex Company – www.instaforex.com