USD/MXN Elliott Wave For the last few days the USD/MXN pair was trading in a upwards movement developing corrective 4 wave (coloured blue). Yesterday during the European session we could observe descending move towards the 12.90 level. Therefore, during the early New York session we could observe start of the bullish mood and price had reached new 2-days high at 13.01 level. We can consider this move as end of the wave 4 (coloured blue). Today during the Asian session the USD/MXN pair start descending move that confirm start of the final 5 wave (coloured blue) of the bigger 1 wave (coloured green).In accordance with our wave rules and taking into account that the wave 5 retraces 100% of the wave 1, we can define the potential targets with measuring the first wave range; the Take Profit at 12.77 (100% of wave 1). As Stop Loss we can use the resistance level at 13.022. It is also necessary to consider the data concerning the U.S. Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m, FOMC Member Williams Speaks and CAD Ivey PMI that can affect the rate of the pair.
Support and Resistance levels (S3) 12.9305 (S2) 12.9630 (S1) 12.9955 (R1) 12.9970 (R2) 13.0295 (R3) 13.0620
Trading Forecast Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short positions at level 12.985 with Stop Loss at 13.022 and Take Profit at 12.778 are recommended.
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