FX.co ★ Trading plan for USDMXN on June 22, 2022

Technical outlook:

USDMXN is trading close to the Asian session's highs around 20.22 on Wednesday after printing lows at 20.11 on Tuesday. The drop from the 20.70 high registered last week looks corrective and prices might pull back towards 20.50 intraday/near term before the decline resumes. Bears might be poised to hold prices below 20.70 in the near term.

USDMXN might be unfolding a diagonal pattern from the 22.15 highs, which could complete below 19.40. Alternatively, the diagonal pattern might be complete around 19.40 and bulls are back in control after taking out immediate price resistance around the $20.65 mark last week. Either way, prices are expected to pull back through the 19.80-90 zone in the next few trading sessions.

USDMXN might remain under pressure until prices stay below the 20.70 potential resistance. Even though the decline is corrective, I expect the price to drop through 19.80 before bouncing back. Traders might be poised to initiate fresh short positions from around 20.50 against 20.70 for now. Only a break higher could change the structure.

Trading plan:

Potential drop to 19.70-80 zone against 21.00

Good luck!