Mexican Peso: steadily strong?
The Mexican Peso has been gathering strength since August 2010, top of the steady 10000 point consolidation range that has been taking place between 13.4000 and 12.4000 levels, from the beginning on the year, on daily charts.
A broader weekly view of the descending wedge would suggest we might be ready for a further run to the lows and pattern baseline at 12.1270, which if broken would lead to a test of the strong support line lying almost another 10000 points below, at around 11.6000.
The expectations for a faster recovery of European markets according to a report from the European Commission, and the current boost from China's industrial growth, have brought a renewed confidence to investors, easing out the concerns that arose earlier this year over Euro's demise.
USD/MXN has been dropping heavily from its all-time highs over the last two years, where it reached 15.592 in early march 2009 after the succesive financial crisis from October 2008. This crisis was the worst seen over the last 70 years: Mexico's GDP contraction, A(H1N1) influenza pandemics, and general world economic situation worsening, led to a continued downfall in public finances and other various sectors.
The mexican currency has seen from there an amazing and consistent recovery.
However, the bounce from 61.8% retracement, the wedge pattern and could signal further consolidation inside the range, so we will probably have to wait a little more until a clearer direction emerges from all the recent turmoil.
We might be in for a pause.
A broader weekly view of the descending wedge would suggest we might be ready for a further run to the lows and pattern baseline at 12.1270, which if broken would lead to a test of the strong support line lying almost another 10000 points below, at around 11.6000.
The expectations for a faster recovery of European markets according to a report from the European Commission, and the current boost from China's industrial growth, have brought a renewed confidence to investors, easing out the concerns that arose earlier this year over Euro's demise.
USD/MXN has been dropping heavily from its all-time highs over the last two years, where it reached 15.592 in early march 2009 after the succesive financial crisis from October 2008. This crisis was the worst seen over the last 70 years: Mexico's GDP contraction, A(H1N1) influenza pandemics, and general world economic situation worsening, led to a continued downfall in public finances and other various sectors.
The mexican currency has seen from there an amazing and consistent recovery.
However, the bounce from 61.8% retracement, the wedge pattern and could signal further consolidation inside the range, so we will probably have to wait a little more until a clearer direction emerges from all the recent turmoil.
We might be in for a pause.
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