Chart USD/MXN Update: Leaning lower
Late-December gains have extended beyond the 20.7630 Fibonacci retracement to reach 20.9050
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 21.0000 | * | figure | S1 | 20.2000 | break level | ||
| R3 | 20.9050 | ** | 31 Dec 2024 (y) 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
17:20 GMT - Late-December gains have extended beyond the 20.7630 Fibonacci retracement to reach 20.9050, before turning lower in profit-taking as overbought daily stochastics unwound. The break below 20.5000 has added weight to sentiment and put focus on support at 20.2000. However, a tick lower in the daily Tension Indicator and mixed/negative weekly charts highlight room for continuation beneath here towards congestion around 20.0000. By-then oversold daily stochastics could prompt fresh consolidation around here. Meanwhile, a close back above congestion resistance at 20.5000 will help to stabilise price action and prompt consolidation beneath the 20.7630 - 20.9050 area. But a close above here would turn sentiment positive and extend April gains towards 21.0000.