USD/MXN's daily shark pattern shows us a potential reversal zone around the 20.80 level.
We can see that the potential reversal level is close to the strong resistance level, which substantially impacted the price in the past.
Currently, the price is below 20.67 level, which is a small resistance level the price needs to break to reach stronger resistance.
Forecast For The Pair
The price action of the pair shows a bearish engulfing candle right on the small resistance level. And we can see the price did not close above the bearish engulfing candle on a daily basis.
This means the price could find a short-lasting break above reaching 20.80 or 20.90 level and then reverse back down.
The price made one short-lasting break above, but the price is now preparing for the next attempt, visible with bullish candles in the last few days.
The harmonic scanner shows the shark pattern levels, and the stop-loss level is just above previous highs and above the strong resistance level.
The exit level is just in the middle between resistance and support lines, making it easily reachable. The second exit target is close to the support level. I would exit earlier, around 20.30.
We could see sellers come in around the 20.80 – 20.90 level. Bulls have lost their strength, so I am paying attention to selling opportunities.