USD/MXN Up 38 Pips On Hourly Chart, Nears 50 and 100 Day Moving Averages; Doji Pattern Appearing on Chart

Hourly Update

(Last Updated September 8, 2021 1:44 GMT)

At the moment, USDMXN’s rate is up 38 pips (0.02%) 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. As for the trend on the hourly timeframe, we see the clearest trend on the 100 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)

A moment of silence, please, for the end of USDMXN’s 7 day down streak; price ended the day prior up 390 pips (0.2%) to finish the day at a rate of 19.94. Compared to its peers in the Forex, USDMXN gave its buyers a return that ranked 17th in terms of percentage change since the day prior. The price chart of USDMXN below illustrates.

USDMXN

USDMXN Technical Analysis

Coming into today USDMXN is now close to its 20, 50, 100 and 200 day averages, located at 20.0734, 20.0111, 20.0021 and 20.1136 respectively, and thus may be at a key juncture along those timeframes. 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 100 day average, which is 620.6 pips away. It should be noted, though, the 100 day simple moving average turned downwards, which may be a bearish sign. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. For additional context, note that price has gone down 9 out of the past 14 days. And for candlestick traders, a special treat: there is a doji 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 0 sell signals and 2 buy signals. Bulls may note that this suggests a buy/sell ratio that is infinite. But, let’s take that with a grain of salt. 🙂 Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Investors are back from holiday, labor day is over, there is today some jewish holiday I do not know the impact but anyway the stock market will be open today, maybe a bit slower than it should because of that holiday. We’ll see what happens, but unless something insane goes on I see no reason for this currency pair to suddenly go crazy. It has been in a boring range for a few months and by now it has repeated the same price action a bunch of times.I don’t do this often, I put a couple of indicators on the chart, mostly because of the pretty colors. They do not say anything special, simply there is:- The MACD (and EMAS) crossing. Over and over. The MACD cross is quicker to visualize than the price bottoming before going up, which never looks the same- The “Max Gain” (and ROC to an extent) showing in a quick single look the expected upside, without having to measure 1 by 1 every previous upswingWe can look for 1 to 1.5%, which is the 2 day ATR. This is very small, and because of spreads risk will be at least 10% bigger and reward smaller by a few percent. Risk to reward gets crushed. It should be at least of 3 (2.7 left after spreads). And be careful not entering late in the evening as spreads widen massively.I don’t like this very much because of the small nature of it, so it should be easy to let it come to us. Really wouldn’t care missing out. It could go straight up 2, 3% or more which would make it more interesting.Not only do spreads decimate the payout assuming this is actually good, but you won’t make any kind of decent money, the only way would be to use serious gear and that’s really a bad idea.I see no reason for the odds not to be 50/50, or at least 1/3, and since it is possible to get a reward greater than twice the risk, plus it’s september and I think it can go well past expectations.Really doesn’t get me excited, it’s just so small and expensive and mediocre. You guys like this kind of stuff?