The American Dollar is trading against the Mexican Peso in the short-term descending channel. The pattern started to form after the currency exchange rate leaved the double top formation in the downward direction. At the present moment, the pair has reached the bottom edge of the channel near 18.3698. It is difficult to say, whether the pattern will sustain, as the bottom line is supported only by the weekly S2 at the 18.3190 level. In addition, the recent days were marked by a number of unexpected events, which increased volatility in the markets. Nevertheless, the resistance cluster formed by the 61.8% Fibonacci retracement level at 19.0145 and weekly R2 at 18.9595, suggests that the downtrend is going to continue to dominate even if certain corrections occur.
| Level | Rationale | Indicator | 1D | 1W | 1M | |||
| R4 | 18.9595 | Weekly R2 | MACD (12; 26; 9) | Sell | Sell | Sell | ||
| R3 | 18.8253 | Weekly R1 | RSI (14) | Neutral | Neutral | Neutral | ||
| R2 | 18.7743 | 55-period SMA | Stochastic (5; 3; 3) | Sell | Sell | Neutral | ||
| R1 | 18.7437 | Monthly PP | ADX (14) | Neutral | Sell | Buy | ||
| S1 | 18.3510 | Trend line | CCI (14) | Neutral | Neutral | Neutral | ||
| S2 | 18.3294 | Bottom Bollinger Band | AROON (14) | Buy | Buy | Buy | ||
| S3 | 18.3190 | Weekly S2 | Alligator (13; 8; 5) | Sell | Sell | Buy | ||
| S4 | 18.2251 | Monthly S1 | SAR (0.02; 0.2) | Buy | Sell | Sell | ||
| Aggregate | → | ↘ | → |