USD/MXN Down 119 Pips Over Past Hour, Makes Big Move Relative to Two Week Trend; Breaks Below 20 Day Average

Hourly Update

(Last Updated September 23, 2022 1:36 GMT)

At the time of this writing, USDMXN’s rate is down -119 pips (-0.06%) from the hour prior. This is the 2nd consecutive hour USDMXN has seen its price head down. Regarding the trend, note that the strongest trend exists on the 20 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on USDMXN. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

USDMXN End of Day Recap

Updated 00:30 GMT (04:30 EST)

The choppiness in the recent daily price action of USDMXN continues; to start today, it came in at a price of 19.931, down 730 pips (0.36%) since the day prior. Relative to other instruments in the Forex asset class, USDMXN ranked 28th the day prior in terms of percentage price change. Below is a price chart of USDMXN.

USDMXN

USDMXN Technical Analysis

First things first: USDMXN crossed below its 20 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 710 pips away. Price action traders in particular will want to note that the 14, 30 and 90 day periods appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone down 6 out of the past 10 days.