Looking at the daily chart on USDMXN, we can see a nice corrective rally in seven swings labeled with W-X-Y letters; these area subwaves of a higher degree wave (IV) that looks to be completed after recent sharp reversal, which looks to be unfolding in five waves the highs, as shown on the 4-hour chart.
Five waves down from the highs indicate that the market found the resistance and it’s turning back to bearish mode, possibly it’s headed even back to lows for a higher degree wave (V) sometime later this year. So, watch out for more weakness but just be aware of short-term a-b-c corrective pullback within downtrend. The main reason for a potential corrective recovery could be strong resistance on Crude oil around 80.00 area if stocks will continue to trade south.
Elliott Wave Analysis: USDMXN Remains Bearish by ew-forecast on TradingView.com
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