USD/MXN may rise 845 - 1189 pips

Our pivot point stands at 17.2908.

Our preference

The upside prevails as long as 17.2908 is support.

Alternative scenario

The downside breakout of 17.2908 would call for 17.2332 and 17.1989.

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 above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 17.0614 and 17.0151). Finally, the USD/MXN is trading above its upper Bollinger band (standing at 17.3770).

Supports and resistances

17.5697 **

17.5353 *

17.5009 **

17.4665

17.3820 last

17.3134

17.2908 **

17.2332 *

17.1989 **

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