USDMXN Up 1149 Pips On Hourly Chart, Underperforms All Forex; Price Base in Formation Over Past 30 Days

Hourly Update

(Last Updated October 6, 2020 15:14 GMT)

Currently, USDMXN’s rate is up 1149 pips (0.54%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as USDMXN has now gone down 4 of the past 5 hours. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Regarding moving averages, it should first be noted that price has crossed the 20 hour moving average, resulting in them with price now being above it. 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 2193 pips (1.02%) since yesterday (opening today near 21.38036), marking the 4th straight day a decline has happened. It may be worth observing that USDMXN was the worst performer of the 40 members in the Forex asset class over the past day. Below is a price chart of USDMXN.

USDMXN

USDMXN Technical Analysis

The first thing we should note is that USDMXN is now close to its 20, 50 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 20 day average, which is 2438.3 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. Price action traders in particular will want to note that the 30 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 30 days USDMXN’s price has gone down 16 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDMXN, with 6 buy signals on our radar and 2 sell signals. This imputes a buy/sell ratio of 3, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a moving average technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Above are short term trading setups based on Moving Average Only ….Moving average can show you trends / support resistance levels , ranging market etc….Just like trendlines we trade breakouts , retests of moving averages too ,To trade correctly our ideas , follow the instructions and wait for candle close wherever advised.