Chart USD/MXN Update: Edging higher
Consolidation is giving way to a fresh test higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 21.0000 | * | figure | S1 | 20.2000 | break level | ||
| R3 | 20.8280 | ** | 26 Nov YTD high | S2 | 20.0000 | * | congestion | |
| R2 | 20.7630 | ** | 76.4% ret of 2021-2024 fall | S3 | 19.7500 | * | break level | |
| R1 | 20.5000 | * | congestion | S4 | 19.6460 | 18 Oct low |
Asterisk denotes strength of level
16:20 BST - Consolidation is giving way to a fresh test higher, with focus turning back to congestion around 20.5000. Daily readings have turned higher and negative weekly stochastics are flattening, suggesting potential for a break towards critical resistance at the 20.7630 Fibonacci retracement and the 20.8280 current year high of 26 November. The negative weekly Tension Indicator is expected to limit any tests of this area in fresh consolidation. But a close above here would turn sentiment positive and extend April gains towards 21.0000. Meanwhile, support is down to congestion around 20.0000. A close beneath here, if seen, will turn sentiment negative and open up a test of 19.7500.