Elliott wave Analysis: CORN and USDMXN Intra-day Look
Corn made a nice impulsive drop from the 375 level, confirming that minor wave ii found resistance, and that wave iii is in play. Wave iii is the strongest and firmest of the five waves, which means even more weakness may follow once a temporary pullback fully develops. We are talking about corrective wave iv, which can look for resistance and a bearish reversal at the 362/365 region.
USDMXN bounced from the lows in an impulsive fashion, which means that we can count five waves up from the lows which suggest a bullish reversal. But, after every five waves, a three-wave a-b-c pullback follows, so watch out for a deeper correction back to around 19.16 support area, from where we may see a bullish continuation. Of course, correction can be even deeper or more complex, so if it’s above 18.75 invalidation area, we will remain bullish.
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