USD/MXN Down 1637 Pips Over Past 4 Hours, Entered Today Down For the 4th Day In A Row; Pin Bar Pattern Appearing on Chart

USD/MXN 4 Hour Price Update

Updated May 20, 2020 05:05 PM GMT (01:05 PM EST)

USD/MXN is down 1637 pips (0.7%) since the last 4 hour candle (opening the current 4 hour candle near 23.217), marking the 2nd candle in a row a decrease has occurred. It may be worth observing that USD/MXN was the worst performer of the 37 members in the Forex asset class over the past four-hour candle.

USD/MXN End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/MXN is down 39 pips (0.02%) since the previous day (opening today near 23.66399), marking the 4th day in a row a decline has happened. Out of the 40 instruments in the Forex asset class, USD/MXN ended up ranking 34th for the day in terms of price change. The price chart of USD/MXN below illustrates.

USD/MXN Technical Analysis

The first thing we should note is that the current price of USD/MXN is sitting close to its 20 and 50 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 3558.1 pips away. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 15 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

Not much in terms quality buy/sell signals we’re seeing for USDMXN; just 3 sell signals and 1 buy signals. This imputes a buy/sell ratio of 0.33, which is bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci, relative strength index and triangle technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

USDMXN broke lower limit of triangle patternPrice is based below HVN at level 24.0610 which indicates that pair is in distribution phaseBelow SMA 100 on H4 frameMACD shows bearish momentumRSI is in downtrendIt’s expected going down testing daily support level at 22.0264 which corresponds to 127% Fibonacci expansion