The USD/MXN pair is located at 16.768 at the time of writing. As you can see on the H1 chart, the rate moves somehow sideways and it seems undecided. It's trapped between the former low of 16.701 (downside obstacle) and the downtrend line (upside obstacle).
Breaking through one of these obstacles brings a clear direction. Technically, as long as it stays under the downtrend line, the rate could extend its downside movement. We have strong sellers around the downtrend line.
USD/MXN Forecast!Staying under the downtrend line and falling below 16.701 announces a deeper drop. This is seen as a selling opportunity.
The downside scenario could be invalidated if the rate jumps and stabilizes above the downtrend line.