USD/MXN - Strong Buying Opportunity
Updated
Whats up traders, I hope you all had a good weekend.
With USD/MXN recently rallying straight of a downtrend, it was bound to have a correction. Here I have USD/MXN on the 1D chart. Price recently had a small downside correction after an up impulse.
Price recently showed a pullback after the up impulse and small upside since. I believe this is a very high probability upside move. We don't get such good quality trades often and I love the set up!
After the up impulse, price corrected to the Fibonacci retracement , 200 major moving average, and sideways support. When price hit the level mentioned, there has been multiple doji candles, and some very gentle bullish pressure. This very subtle shift from bears to bulls is absolutely perfect, and I am expecting a very strong up move from this area. This trade is a gem, and you don't get them this good often.
For those who trade indicators, I also accidentally found a compelling bullish Stochastic divergence with this analysis. Usually I would not post indicators on my charts, but due to how strong and compelling the bullish divergence is, it is worth noting for this analysis and can be found on the above chart.
I am expecting price to move to the upside, to the 3 wave target of 19.4000. My bias is up for this pair, however there are is 2 key trading scenarios that could play out for price to complete the desired move.
-Price retests the swing low (The 18.5000's level where price had it's previous correction low) before having the move to the upside target.
-Price rallies from current levels, straight to upside target (Due to the nature of this set up, this is surprisingly likely)
Bare in mind that this trade could retest lows before upside, so you must use this analysis as a guide but trade using your own.
I will be updating this analysis as the trade progresses.
With USD/MXN recently rallying straight of a downtrend, it was bound to have a correction. Here I have USD/MXN on the 1D chart. Price recently had a small downside correction after an up impulse.
Price recently showed a pullback after the up impulse and small upside since. I believe this is a very high probability upside move. We don't get such good quality trades often and I love the set up!
After the up impulse, price corrected to the Fibonacci retracement , 200 major moving average, and sideways support. When price hit the level mentioned, there has been multiple doji candles, and some very gentle bullish pressure. This very subtle shift from bears to bulls is absolutely perfect, and I am expecting a very strong up move from this area. This trade is a gem, and you don't get them this good often.
For those who trade indicators, I also accidentally found a compelling bullish Stochastic divergence with this analysis. Usually I would not post indicators on my charts, but due to how strong and compelling the bullish divergence is, it is worth noting for this analysis and can be found on the above chart.
I am expecting price to move to the upside, to the 3 wave target of 19.4000. My bias is up for this pair, however there are is 2 key trading scenarios that could play out for price to complete the desired move.
-Price retests the swing low (The 18.5000's level where price had it's previous correction low) before having the move to the upside target.
-Price rallies from current levels, straight to upside target (Due to the nature of this set up, this is surprisingly likely)
Bare in mind that this trade could retest lows before upside, so you must use this analysis as a guide but trade using your own.
I will be updating this analysis as the trade progresses.
Note
Price has corrected, we can now reanalyze the chart, and look for the potential up move. As soon as the down move completed, there was a strong bullish move on the 4H chart, which has been followed with more upside. Due to the strong upside movement off of support, it resulted in price closing as a morning star signal
After the downside move followed the compelling upside activity. I was able to detect that the down move was just a pullback of the bullish up leg.
The pullback landed on the Fibonacci retracement support, before the strong buying began again. This confirmed it was just a pullback before the next impulse leg, and offered us a good buying opportunity, of which I monetized on. (See chart for more details)
I am expecting a longer term up move. But for the time being, I am monetizing on the short term impulse that occurred from the morning star signal. Price could go straight to target without a correction, which of course would be even better.
I will post further updates on this analysis as the trade progresses.
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