USDMXN has seen another missed attempt at the recent false break at the end of January.
Prices soon retreated after the said break to the mid-$19 level. However, a recent bull rally led to a move back over the $20 handle.
This choppy price action has now led bulls to drive the market once more, as prices remain firmly away from the Ichimoku cloud’s top border.
This could indicate that further upside is evident and that another attempt to the false break level is in sight.
An intraday look at the currency pair shows that prices have broken out of a recent descending channel. The trend has turned slightly as prices look at a way out of cloud engulfment.
Should the top border of the Ichimoku cloud be pierced, this could lead to a move above the 38.2% leg.
However, the recent bearish divergence could put a stop to any bull progression, should the recent consolidation phase continue.
In the near-term, prices will look for the golden ratio if there is any chance to regain February’s losses.