Bullish Looking Crude Oil May Push USDMXN Even Lower

As you may already know, in risk-on sentiment investors are confident, so stocks are bullish. Risk-on mode is in play since March lows and seems like it may continue into January of 2021.

The main reason for a bullish continuation in the stock market in risk-on mode is also bullish looking Crude oil, which has an unfinished five-wave cycle, So more upside is in view for wave »v« towards 50 level, ideally once a correction in wave »iv« fully unfolds with ideal support in the 46-44 zone.

Bullish continuation on Crude oil may cause more weakness for the USDMXN pair since we know they are in negative correlation. So, USDMXN could easily continue lower, at least for one more push to the downside, especially because of recent short-term A-B-C corrective recovery.