On August 19th we argued that the USDMXN has room to rally to the key resistance we have hit the last couple sessions (read here) but now that we are at key resistance, what now?
The USDMXN has a very sloppy cup and handle pattern.
The USDMXN has been trading abnormally heavy the last couple sessions and is now at risk at a break lower out of the long term daily triangle.
The EURMXN is breaking out of a long term consolidation inside a triangle that has formed all of 2019. This is a significant development for a couple reasons.
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.