US Dollar, Mexican Peso, South Korean Won,South African Rand – TALKING POINTS
- USD/MXN appears to be forming a short-term Bull Flag continuation pattern
- USD/KRW outlook bullish after the pair broke above several resistance layers
- USD/ZAR is challenging prior support channel but failure may lead to pullback
USD/MXN rose over 30 percent to an all-time high at around 25.36 before retreating and subsequently shattering the multi-week uptrend (gold trend line). However, the pair now appears to be forming a short-term continuation pattern known as a Bull Flag. USD/MXN looks like it is in the congestive stage as it coils up before springing higher and resuming the prior uptrend. The potential rise may be proportional to the ascent leading up to the digestive interim.
USD/MXN – Daily Chart
USD/MXN chart created using TradingView
USD/KRW may be on the verge of a bullish spike after it broke out of a steep, month-long descending resistance channel (gold parallel lines) and an inflection point at 1219.7 (white-dotted line). If the move is met with follow-through, the target may be the 11-year swing-high at 1272.00 (purple-dotted line) where the pair previously stalled before aggressively retreating.
USD/KRW – Daily Chart
USD/KRW chart created using TradingView
USD/ZAR has risen a little over 22 percent since the start of the uptrend (gold trend line) but has recently broken below it as part of a broad retreat from its all-time high at 19.0340. Following the cool-off period, the pair appears to be making an attempt at re-saddling the rising support channel after bouncing back just above the 17.8289 inflection point. Failure to re-mount the slope of appreciation could see USD/ZAR retest prior support.
USD/ZAR – Daily Chart
USD/ZAR chart created using TradingView
US DOLLAR TRADING RESOURCES:
— Written by Dimitri Zabelin, Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter