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Despite trading with an upside bias, USDMXN’s rejection at the 38.2% Fibonacci could be spelling a shift.
The 23.00 psychological resistance is also where prices meet the median line of the lower regression zone. This makes the intersection a strong confluence level.
When taking into account the weak bearish attempt to take out the 61.80% Fibonacci at 21.279, chances to revisit the support level are good. This can come after a weak bullish attempt towards the 23.00 level or before.
The 2H chart above shows that the pair trades in a descending channel in the shorter-term. With the median line having repelled bears, we could see the said bullish attempt coming into effect. However, bulls could see a rejection at the upper channel near 22.80. If not, a fresh high can be expected.
In case prices break below the median line prior to moving up though, this would suggest a decline towards the 21.279. This will require a break outside the ascending channel first.
Revisiting the golden r...
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