USDMXN, a bullish AB=CD pattern could be materializing
A possible bullish AB =CD pattern may be forming in the Mexican peso - US dollar pair.
My hypothesis is that it will return to at least 20 pesos per dollar and then rebound. The most that could fall would be around 19.6 pesos per dollar.
The potential reversal zone (D) coincides precisely with the 127.2% of the fibo and with a level that served as support in mid-February, so a reaction should be expected when it touches it.
You can either go short from here until it hits 20 or wait until it reaches that level to go long.
My hypothesis is that it will return to at least 20 pesos per dollar and then rebound. The most that could fall would be around 19.6 pesos per dollar.
The potential reversal zone (D) coincides precisely with the 127.2% of the fibo and with a level that served as support in mid-February, so a reaction should be expected when it touches it.
You can either go short from here until it hits 20 or wait until it reaches that level to go long.
