USDMXN has five waves down from 21.40 area, wave A that belongs to a bigger and still ongoing retracement. We are tracking wave 4, which can be headed back to 19.50 area after a completed bounce up in current wave B that can see a top near 21.00 later this week. This whole pullback from the high can be wave four as part of an ending diagonal in context of a bigger Elliott Wave cycle.
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.
Basic Ending Diagonal Pattern: