Chart USD/MXN Update: Room for a corrective test higher
Cautious trade above congestion support at 19.5000 is giving way to a test higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 20.2000 | break level | S1 | 19.5000 | * | congestion | ||
| R3 | 20.0000 | * | congestion | S2 | 19.3700 | ** | 38.2% ret of 2024-2025 rally | |
| R2 | 19.8430 | ** | 14 Mar (m) low | S3 | 19.2000 | * | congestion | |
| R1 | 19.7500 | * | break level | S4 | 19.0620 | ** | 18 Sep (m) low |
Asterisk denotes strength of level
16:35 BST - Cautious trade above congestion support at 19.5000 is giving way to a test higher, with prices currently consolidating the test of resistance at 19.7500. Daily readings are rising and oversold weekly stochastics are flattening, suggesting room for a test above here towards the 19.8430 monthly low of 14 March. However, the negative weekly Tension Indicator and bearish longer-term charts are expected to limit any extension beyond here in renewed selling interest towards congestion within the 20.0000 - 20.2000 range. Following any corrective trade, fresh losses are looked for. A close below 19.5000 is needed to turn sentiment outright negative and extend February losses towards the 19.3700 Fibonacci retracement.