The longest term chart shows that the Peso has been in an historical trend of depreciation against the USD. The charts below shows the exchange rate — the number of Pesos required to purchase one USD. When I started trading the Peso at the IMM in the 1970s, the Peso was at a premium to the USD.
The Peso is coiling within a 5-year symmetrical triangle on the monthly chart. The key challenge within this triangle will be the 14.50 to 15.00 level. A clearance of this level will indicate that much greater depreciation of the Peso against the USD would occur — very possibly a move to 17.0 to 18.0. The last period of substantial depreciation was in late 2008. I am looking for a similar move within the next year or two.
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