USDMXN Down 880 Pips On Hourly Chart, 4 Day Down Streak Broken; in a Downtrend Over Past 14 Days

Hourly Update

(Last Updated September 9, 2020 15:14 GMT)

Currently, USDMXN’s rate is down -880 pips (-0.41%) from the hour prior. USDMXN has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe. Of note is that the 50 hour changed directions on USDMXN; it is now pointing down. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 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 4 day down streak; price ended the day prior up 500 pips (0.23%) to finish the day at a rate of 21.586599. Compared to its peers in the Forex, USDMXN gave its buyers a return that ranked 9th in terms of percentage change since the day prior. The price chart of USDMXN below illustrates.

USDMXN

USDMXN Technical Analysis

The first thing we should note is that USDMXN is now close to its 20 and 200 day averages, located at 21.9541 and 21.5251 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 200 day average, which is 615 pips away. 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.

The View From Around the Web

Not much in terms quality buy/sell signals we’re seeing for USDMXN; just 3 sell signals and 3 buy signals. This imputes a buy/sell ratio of 1, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

Mexican Peso has carved a well-defined range just below the September open. Here are the levels that matter on USD/MXN technical charts in the days ahead.


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