USD/MXN Trading Setup: Ascending Triangle Promotes Bullish Potential
28 October 2024
In today’s technical analysis, let’s dive into the American Dollar to Mexican Peso (USD/MXN), an exotic currency pair that’s presenting a textbook ascending triangle pattern—a formation that’s as intriguing as it is promising. The ascending triangle comprises a horizontal resistance marked in green and a blue dynamic support. In technical terms, this pattern is bullish, often suggesting an eventual breakout to the upside due to building pressure against the resistance. Currently, we’re right at this green resistance level, positioning the pair at a critical decision point.
How to approach trading USD/MXN here? If the price breaks above this green resistance and closes the day above it, it would mark a strong signal to go long, reinforcing a bullish sentiment. Conversely, if the price bounces off the resistance with a bearish reversal pattern, it could be an opportunity for a short-term sell position. However, a true long-term bearish signal would only be confirmed if the price closes below the blue uptrend line, indicating a shift in momentum. While the bullish breakout scenario remains slightly more probable, monitoring these key levels will be essential to determine the next directional move for USD/MXN.