Critical Resistance Tests for USD/MXN's Bullish Trend
Solid ECN – The U.S. Dollar broke out from the bearish channel against the Mexican Peso in yesterday's trading session. The USD/MXN pair currently trades at about 16.97 inside the Ichimoku cloud, which represents the resistance area.
The technical indicators are bullish; the relative strength index hovers above 50, and the awesome oscillator bars are green. Therefore, we can interpret that the bearish market is paused, and there might be a shift in trend from bearish to bullish.
However, for the uptick in momentum to continue, the bulls face the 38.2% Fibonacci barrier. Failure to overcome this resistance area will likely lead to the continuation of the downtrend.
If the pair stabilizes itself above the Ichimoku cloud and the Fibonacci level mentioned earlier, the bullish wave is likely to extend further, aiming for the 50% Fibonacci level.