Chart USD/MXN Update: Leaning lower
Cautious trade following sharp reactive gains has given way to a break lower
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 17.3850 | ** | 17 Jan (m) high | S1 | 17.0000 | congestion | ||
R3 | 17.3735 | ** | 50% ret of Oct-Apr fall | S2 | 16.8000 | * | break level | |
R2 | 17.3000 | * | congestion | S3 | 16.5000 | ** | congestion | |
R1 | 17.1500 | * | congestion | S4 | 16.3250 | ** | Oct 2015 low |
Asterisk denotes strength of level
17:00 BST - Cautious trade following sharp reactive gains has given way to a break lower, with prices currently pressuring congestion support at 17.0000. Overbought daily stochastics are leaning lower, unwinding negative divergence, and the positive daily Tension Indicator is flattening, highlighting a deterioration in sentiment and room for fresh losses in the coming sessions. A close below 17.0000 will add weight to sentiment and prompt a swift fall towards 16.8000. However, rising weekly charts could limit any initial tests in fresh consolidation. Meanwhile, a close above 17.1500, if seen, will prompt consolidation beneath critical resistance at 17.3735 - 17.3850.