USD/MXN Up 110 Pips On Hourly Chart, Fares the Worst Out of Forex; Breaks Below 20 Day Average

Hourly Update

(Last Updated August 4, 2022 1:38 GMT)

Currently, USDMXN’s rate is up 110 pips (0.05%) from the hour prior. USDMXN has seen its price go up 4 out of the past 5 hours, thus creating some compelling opportunities for bulls. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 20 hour timeframe. 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)

After 3 up days, USDMXN snaps its streak, falling 3170 pips (-1.53%) over the past day to close at an exchange rate of 20.456. It may be worth observing that USDMXN was the worst performer of the 39 members in the Forex asset class over the past day. 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 200 day average, which is 223 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. Volatility for USDMXN has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 14 days USDMXN’s price has gone down 8 them.