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USDMXN Edges Higher, Extends Bounce From 17.00

MEXICO
  • Last week’s move lower for USDMXN appears to be a correction and trend conditions remain bullish - for now. Price recently traded through an important resistance at 17.4280, the Aug 4 high. The daily close above 17.4280 confirmed a double bottom reversal pattern on the daily chart. If correct, this signals scope for a climb towards 17.9292 next - 50.0% of the Mar 20 - Jul 28 downleg.
  • This week, trade balance data and unemployment will precede the Banxico decision, where all analysts expect the committee to remain on hold at 11.25% and await further progress on inflation.

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