An erratic, but overall negative consolidation theme has dominated May, with a very cautious tone going towards month-end, but the bias remains for a challenge lower and we see downside risks into Tuesday.
On an intermediate-term basis, we see a broader range as 19.318 to 18.747, BUT with the skewed risks for an intermediate-term bearish shift below 18.747
- We see a downside bias for 18.981; break here aims for 18.934, maybe 18.911.
- But above 19.101 opens risk up to 19.165.
Intermediate-term Range Breakout Parameters: Range seen as 19.318 to 18.747.
- Upside Risks: Above 19.318 sets a bull trend to aim for 19.480, 19.622 and the 19.70/72 area.
- Downside Risks: Below 18.747 sees a bear trend to target 18.501, 18.405 and 18.000/17.940.
Daily USDMXN Chart