USD/MXN Under Pressure

USD/MXN: under pressure

• Williams Alligator bearish;
• ADX and DI mixed;
• RSI bearish.

The four-hour chart of the USD/MXN currency pair has a bearish continuation pattern (see below). The Williams Alligator indicator performed a bearish crossover, placing all of the lines in the ebarish eating mode. There was a test of the bottom line from below recently, but it failed to chart a clear breakout thus it’s fair to expect further selling pressure on the rate that could chart a fresh local bottom.      

The ADX and DI indicator shows multiple crossovers between the green and red lines, which is a sign of uncertainty. Besides, the mainline is far below the zero level, pointing to a weak momentum. This is exactly what the bears need to keep pushing the rate lower. The Relative Strength Index bounced off the local low, reflecting the green candlestick but remained in the bearish zone far from the 50% threshold.                                                        

Pivot points:

R1: 20.12203 (WA green line);

R2: 20.20423 (WA red line);

S1: 19.99948 (recent bottom);

S2: 19.90000 (round-figure extension).