USD/MXN rallies cannot be ruled out - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that since the daily stochastic is oversold for USD/MXN pair, rallies are not ruled out but only a return above the resistance at 18.7030 (daily parabolic) would affect the underlying downside channel).

Key Quotes

“We don’t favor such a view: the downside parallels on the weekly chart and the bearish signals on the weekly indicators rather plead for a deeper decline of the cross to 18.0460 (daily Bollinger lower band). A break below this threshold would underpin bearish momentum, flagging  17.7290 (quarterly parabolic) and 17.40 as next key targets. The resistances are at 18.3220, at 18.4970, at 18.7030 and at 19.”