On September 7, the USD/MXN exchange rate entered an ascending channel. This pattern is a part of a longer-term ascending channel which has confined the pair since mid-July.
The rate’s trading range, however, has diminished during the last trading sessions, as apparent by its failure to overcome the 19.2662 mark—its highest level since mid-2015—on two separate occasions.
The US Dollar is currently testing the resistance of the weekly PP, the 55- and 100-hour SMAs at 19.15; the 200-hour SMA and the weekly S1 are located nearby circa 19.03. It is likely that bears pressure the Greenback during this week, resulting in a test of the lower channel boundary near the 19.00 mark.
In general, the rate’s subsequent movement could be tended southwards towards the bottom boundary of the senior channel.