USD/MXN may rise 778 - 1119 pips

Our pivot point is at 17.1920.

Our preference

The upside prevails as long as 17.1920 is support.

Alternative scenario

The downside breakout of 17.1920 would call for 17.1348 and 17.1007.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 17.0189 and 17.0009). Finally, the USD/MXN is trading above its upper Bollinger band (standing at 17.2486).

Supports and resistances

17.4292 **

17.3950 *

17.3609 **

17.3268

17.2490 last

17.2145

17.1920 **

17.1348 *

17.1007 **

Number of asterisks represents the strength of support and resistance levels.