The USD/MXN is another EM currency pair we are monitoring after we identified bullish characteristics on the USD/INR and USD/CNH previously. The USD/MXN’s temporary break of its bullish trend line earlier this month must have trapped a few bears. This is a bullish reversal pattern in my eyes, so we could see rates push higher from here. That said, it still needs to break its corrective bearish trend line which comes in around 19.4000, while the 200-day moving average at 19.3450 could also provide some short-term resistance. The previous high is at 19.6220, which must break if we are to have a new higher high in place and therefore a bullish confirmation. Meanwhile, key support now comes in at 19.1500, which converges with the now re-established bullish trend line and prior resistance.
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