USD/MXN 1H Chart: Channel Down
- The American Dollar was trading against the Mexican Peso in a medium-term ascending channel.
- However, after a data release on the US CPI the buck entered into a seven hour downfall and lost 1.3% in value.
- Such depreciation led to appearance of the current short-term descending channel with two reaction highs and once reaction low.
- Since the pattern has not formed completely, the currency pair is expected to continue to move within it at least until the weekly S1 at 17.7187.
- Afterwards, a rebound might happen.
- On the other hand, by that time the rate might experience additional pressure from the approached 55-hour SMA, which could impede the climb upstairs.
- Finally, there is a need to take into account that due to narrowness of the channel it might be prematurely distorted by any news coming from North America.
