Published: 2024-05-07T16:14:12.000Z
Chart USD/MXN Update: Leaning lower
Senior Technical Strategist
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Cautious trade has given way to the anticipated break lower to 16.8000
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 17.3735 | ** | 50% ret of Oct-Apr fall | S1 | 16.8000 | * | break level | |
R3 | 17.3000 | * | congestion | S2 | 16.6500 | * | congestion | |
R2 | 17.1500 | * | congestion | S3 | 16.5000 | ** | congestion | |
R1 | 17.0000 | * | congestion | S4 | 16.3250 | ** | Oct 2015 low |
Asterisk denotes strength of level
16:55 BST - Cautious trade has given way to the anticipated break lower to 16.8000, where mixed intraday studies and flattening oversold daily stochastics are prompting short-term reactions. The daily Tension Indicator continues to track lower and overbought weekly stochastics are turning down, highlighting room for a further break towards congestion around 16.6500. However, the rising weekly Tension Indicator and improving longer-term charts suggest any deeper losses could be limited in fresh buying interest. Meanwhile, a close back above 17.0000 would turn sentiment neutral and give way to renewed consolidation beneath 17.1500.