USDMXN has been in a well defined uptrend with higher lows and higher highs. We hit a resistance zone around 19.60 which, scrolling back, has also been a flip zone.
From here, we did not make another higher high. In fact, we made what appears to be a double top pattern.
19.42 was the previous higher low swing zone that we were watching for a break. Price tested this zone, before making a lower bounce and then finally breaking and closing this zone with a strong red candle.
I would consider taking profits at 19.25, however we cannot ignore the flip zone around 19.3150. Keep an eye out on how price reacts there.
Also we do have US Non-Farm Payrolls tomorrow which obviously is a major event for the US Dollar.
From here, we did not make another higher high. In fact, we made what appears to be a double top pattern.
19.42 was the previous higher low swing zone that we were watching for a break. Price tested this zone, before making a lower bounce and then finally breaking and closing this zone with a strong red candle.
I would consider taking profits at 19.25, however we cannot ignore the flip zone around 19.3150. Keep an eye out on how price reacts there.
Also we do have US Non-Farm Payrolls tomorrow which obviously is a major event for the US Dollar.