USD/MXN may depreciate as the momentum indicator 14-day RSI indicates a potential correction.
A four-month high of 18.99 acts as an immediate resistance level.
The pair could find support at the lower boundary of the ascending channel around the 18.70 level.
USD/MXN extends its gains for the second session, trading around 18.90 during the European hours on Friday. The analysis of the daily chart indicates the bullish bias as the pair is moving higher within an ascending channel.
However, the 14-day Relative Strength Index (RSI), a momentum indicator, is positioned at the 70 level, indicating that the USD/MXN pair is overbought. This suggests that a correction could be imminent.
On the upside, the USD/MXN pair tests a four-month high of 18.99 recorded on June 12. A breakthrough above this level could reinforce the bullish bias to test the upper boundary of the ascending channel near the level of 19.20.
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