Technical analysis of USD/MXN for December 29, 2015

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.

Support: 16.85

Resistance: 17.25

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The material has been provided by InstaForex Company – www.instaforex.com

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