USD/MXN Elliott Wave During the Friday's European session the USD/MXN pair was trading in a downward movement toward to 13.165 level(100EMA). Therefore during the New York session the USD/MXN continues trading in a bearish mood to the new low at 12.960 level.We can consider this move as end of the 3 wave (coloured pink).Today this exotic currency start in a Sideways move. Presently we can observe start of the 4 wave (coloured pink).We are expecting to see price higher today.In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (13.287-13.047-13.265). Take Profit at 12.886 (161.8% of wave 1). As Stop Loss the invalidation point at 13.100 can be used.Also it is necessary to consider the data concerning the U.S. Core PCE Price Index m/m, Personal Spending m/m, Chicago PMI that can affect the rate of the pair.
Support and Resistance levels (S3) 12.8992 (S2) 12.9316 (S1) 12.9640 (R1) 12.9691 (R2) 13.0015 (R3) 13.0339
Trading Forecast Proceeding from Elliott Wave Rules, this week the trend is expected to begin the downward movement. That is why Short positions at level 13.000 with Stop Loss at 13.100 and Take Profit at 12.886 are recommended.
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