USDMXN Down 99 Pips On Hourly Chart, Came Into Today Down For the 4th Straight Day; Eyes 200 Day Average

Hourly Update

(Last Updated September 7, 2020 15:13 GMT)

At the time of this writing, USDMXN’s rate is down -99 pips (-0.05%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved up. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Of note is that the 20 hour changed directions on USDMXN; it is now pointing down. 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 1056 pips (0.49%) since yesterday (opening today near 21.5366), marking the 4th straight day a decline has happened. Compared to its peers in the Forex, USDMXN gave its buyers a return that ranked 36th in terms of percentage change since yesterday. The price chart of USDMXN below illustrates.

USDMXN

USDMXN Technical Analysis

Notably, USDMXN is now close to its 20 and 200 day moving averages, which may act as price barrier for the asset. 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 220.9 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 down. Or to simplify this another way, note that out of the past 30 days USDMXN’s price has gone down 17 them.

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. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

As you seen my last week trade setup and our last call on this pair and USDZAR as well, the market almost hit the expected target around 21.5000 area.On the weekly chart market look on a bearish momentum with a possible break of the recent lows in the near future But i should retrace back towards up to maintain its structure(support and resistance) .Price on the daily chart will probably test the daily structure before starting a bounce over it.If the price will break below the structure we will monitor the market for a nice short order.We will consider a long reversal only over the 22.0000 area.All the entries should be applied if all the rules are applied .Do comment us below for instance.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram