USDMXN: A Trading Plan from the Support Level.
-Introduction-
USDMXN is currently approaching the support area of 19.600 ~ 19.700. This is a strong support level, as we can see many times the price has bounced up from this level. Observing closely in daily chart, we can see that before a bounce from the support area, almost all prices formed a kind of a bullish candlestick pattern. After the bounce, we could spot price moving in a range for about two to three months. Therefore, we will be looking for short-term buy opportunities from the support level.
-Trading Plan-
First, we want to make sure that the price will not break the bottom. Therefore, we will be first looking for a bullish candlestick formation at the bottom. It could be a doji star, engulfer, piercing pattern, etc. If a pattern is formed, we will then enter our buy positions targeting the resistance level of 20.150 ~20.200. We expect the price to range for about two to three months from the bottom to the 20.150 ~ 20.200 level; therefore, we will plan to trade this range. However, we are only planning to buy from the bottom because we do expect the price to eventually break up from the range.
USDMXN is currently approaching the support area of 19.600 ~ 19.700. This is a strong support level, as we can see many times the price has bounced up from this level. Observing closely in daily chart, we can see that before a bounce from the support area, almost all prices formed a kind of a bullish candlestick pattern. After the bounce, we could spot price moving in a range for about two to three months. Therefore, we will be looking for short-term buy opportunities from the support level.
-Trading Plan-
First, we want to make sure that the price will not break the bottom. Therefore, we will be first looking for a bullish candlestick formation at the bottom. It could be a doji star, engulfer, piercing pattern, etc. If a pattern is formed, we will then enter our buy positions targeting the resistance level of 20.150 ~20.200. We expect the price to range for about two to three months from the bottom to the 20.150 ~ 20.200 level; therefore, we will plan to trade this range. However, we are only planning to buy from the bottom because we do expect the price to eventually break up from the range.
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