Peso will keep declining
By Dima Chernovolov
• USD/MXN rises inside primary Ⓒ-wave
• Likely to rise further to 15.065 and 15.230
USD/MXN has been rising sharply in the last few months – inside the extended primary Ⓒ-wave from April of 2013. The latest intermediate impulse (3) of this Ⓒ-wave earlier broke above the strong resistance level 14.500 (which stopped the sharp primary Ⓐ-wave in May of 2012).The price recently corrected shortly to this price level (acting as support now after it was broken) - after which the price reversed sharply up. The support zone near 14.500 was further strengthened by the proximity of the 38.2% Fibonacci Correction of the earlier upward impulse from the end of wave 4.
USD/MXN is likely to rise further in the active intermediate impulse (3) toward the next resistance levels 15.065 and 15.230 (intersecting with the resistance trendline of the weekly up channel from 2011).