USD/MXN Down 401 Pips On Hourly Chart, Fares the Worst Out of Forex; Moves Down For the 3rd Day In A Row

Hourly Update

(Last Updated October 5, 2020 16:22 GMT)

Currently, USDMXN’s rate is down -0.0401 (-0.19%) from the hour prior. USDMXN has seen its price go down 24 out of the past 30 hours, thus creating some compelling opportunities for bears. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on USDMXN. Given that we see downtrend on the 20 and 10 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 bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

USDMXN End of Day Recap

Updated 00:30 GMT (04:30 EST)

USDMXN is down 2053 pips (0.94%) since the previous day (opening today near 21.5997), marking the 3rd day in a row a decrease has occurred. Those trading within the Forex asset class should know that USDMXN was the worst performer in the class. Below is a price chart of USDMXN.

USDMXN

USDMXN Technical Analysis

Moving average crossovers are always interesting, so let’s start there: USDMXN crossed below its 20 and 200 day moving averages 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 348 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed down. Also of note is that on a 30 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 30 days USDMXN’s price has gone up 15 them.

The View From Around the Web

Not much in terms quality buy/sell signals we’re seeing for USDMXN; just 1 sell signals and 0 buy signals. This imputes a buy/sell ratio of 0, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

I forecast that the price will make a sideway….For the price to confirm uptrend, it must break the Wave 2 & Wave 4 trendline….This will signify the last Wave 5 before going short.