USD/MXN has moved sideways in the short term and now it seems ready to start an upside movement. Still, we have to wait for confirmation before jumping into a long position. The greenback started to increase again as the US Dollar Index has bounced back.
The ISM Manufacturing PMI’s strong growth from 60.7 to 61.2 helped the DXY to increase a little after its most recent sell-off. DXY’s further growth in the short term after the US high-impact data reported during the week should force USD/MXN to develop a swing higher.
USDMXN retested a major uptrend line and now it tries to increase again. Technically, it could increase after its failure to stabilize under 19.891 static support. Now is pressuring the immediate downtrend line.
Its failure to reach the S1 (19.7879) in the last attempt and staying within the ascending pitchfork’s body signals a potential bullish momentum. Registering a new higher high, closing above 20.0768 could validate a strong growth in the short term.
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