USD/MXN is trading in two channels simultaneously. The senior pattern is a rather chaotic channel that has confined the rate since late July. Meanwhile, the junior formation resulted from a consolidation period effective since September 6 when the US Dollar began trading between the monthly PP and S1 in the 17.84/17.62 area.
Two possible scenarios might occur. First, the rate surpassing the 200-, 100– and 55-hour SMAs might set the Greenback for a surge towards the monthly R1 at 18.10. As a result, both channel would be breached. Second, other technical indicators might still support a minor upward movement until the weekly R2 or R3, but eventually turn the rate south until the 100– and 200-hour SMAs and the weekly PP near the 17.72 mark are reached.
Two possible scenarios might occur. First, the rate surpassing the 200-, 100– and 55-hour SMAs might set the Greenback for a surge towards the monthly R1 at 18.10. As a result, both channel would be breached. Second, other technical indicators might still support a minor upward movement until the weekly R2 or R3, but eventually turn the rate south until the 100– and 200-hour SMAs and the weekly PP near the 17.72 mark are reached.