USDMXN is testing the long-term channel support
On the Monthly USDMXN chart, we can see that the pair is testing the Andrew’s Pitchfork long-term uptrend channel support line 19.840 and is bouncing off it for now. A confirmed break above 20.700 is required for the upside swing to 22 to keep this long-term uptrend channel intact.
On a Daily chart, we can see a new downtrend Schiff Pitchfork channel formed that is confirming an upside limitation of 20.700 level which is also the newly formed channel resistance along with the horizontal line. Break above this level is required for the upside continuation as mentioned above. A rejection here would lead to a good opportunity to short the pair. Look here for the short trade entry upon a failed break above the 20.700 with the stop loss above 21.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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