The USDMXN breaks out higher out of a triangle
Consolidation patterns, like a triangle, can be very explosive patterns when it comes to the markets because the market is “winding up” for so long. Once the breakout occurs, there usually is a catalyst that drives the market one direction or the other. In this case the USDMXN has been consolidating for the last 5 weeks and finally broke out higher. The reason was the weak industrial production numbers. This has allowed for the pair to stage a move above the 19.2000 resistance which now targets the 19.5678 level which is the 38% retracement.
Blake Morrow
