USD/MXN: Fresh break above the 22.05 area sounds premature - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that even though they don’t rule out rallies in USD/MXN pair, a fresh break above the 22.05 area (daily parabolic and rising trendline) sounds premature.

Key Quotes

 “Daily upside parallels have indeed been affected by the turnaround of the daily MACD and the weekly stochastic is no longer bullish.”

“We’ll then be cautious as the cross can reverse downside and test again a support at 20.9460-20.97 (9-week moving average). A break of these last supports would provide fresh bearish momentum to 20.6170 (daily Bollinger lower band) and the support at 20.2330 (daily parabolic). The resistances are at 22.0370-22.05, at 22.2030, at 22.67 and at 22.82.”