The Mexican peso is getting bullish. As you can see on the 4H chart, there’s pretty strong support by the 1/8 Murrey Math Level (18.9453), which becomes such a big barrier for bears. The market hasn’t been fixating above this level since May, so there’re seven pullbacks from it in a row.
Thus, we would rather foresee a rally towards the 4/8 Murrey Math Level (19.5312), which has been confirmed by higher timeframes. For now, the price has locked between two SuperTrend indicator’s Lines (from 4H and Daily charts). The bullish cross of these lines will confirm the outlook.
Besides, we should watch 2/8 Murrey Math Line (19.1406), which is acting as resistance. If the pair breaks and fixates above this line, there’ll be more evidence that the rally is underway. Meanwhile, if the market remains under the Super Trend Lines, the bullish outlook will be under pressure because of a risk to have just another test of 1/8 MM Line.
The bottom line is that the Mexican peso has a significant bullish opportunity to reach 4/8 or even 5/8 MM Line. However, we should wait for confirmation of this scenario as a break-out of 2/8 MM level and a bullish cross of Super Trend Lines.
The material has been provided by InstaForex Company – www.instaforex.com