(Last Updated September 22, 2020 0:14 GMT)
At the moment, USDMXN’s rate is up 199 pips (0.09%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe. 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)
USDMXN entered today at 21.1159, up 2620 pips (1.26%) from the day prior. On a relative basis, the day prior was pretty good: USDMXN bested all 40 of the assets in the Forex class 🙂 Let’s take a look at price chart of 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 21.5368 and 21.6082 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 20 day average, which is 4208.8 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
Of note is that traders in aggregate have opinions on USDMXN, with 6 buy signals on our radar and 1 sell signals. This imputes a buy/sell ratio of 6, which is very bullish. As for the rationale, technical traders seem to be citing the appearance of a divergence technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
USDMXN beautifully touched monthly support and rejected with a daily bullish engulfing….I initiated buy on the next daily candle….Daily also shows bullish divergence on obv and we have been in an uptrend since 1999.