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Mxn

I think its going down a little more.. USD/MXNThe down movement is at the first started by Central Bank of Mexico auctions of cheap USD, to calm the forex markets, then they realize that the automated auctions guided by a systems of rules, it was making the market more volatile, they said because the automated robots using algorithms, then the raise of interest rates from Mexico, that give the down movement a boost, finally the partial recover of oil prices let the Mexican peso (MXN), recover the lost territory.... Then here we are, the market its moving sideway and its about to test some very strong resistance's.. look at the chart, comment your ideas..
Short
by JavierSoto
1
Buy MXNGBP Gartely - great Risk/Reward and good fundamentalsTechnicals We have a Gartely pattern set up here. I am looking to go long at 0.03697, which falls between the 0.786 retracement and 1.272 extension along with 1:1 ratio between the AB and CD legs. There is also a divergence on the Relative Strength Index from a heavily oversold condition, supporting a spike from around the current price. Fundamentals Slumping oil prices damage the prospect for investment in Mexico’s energy industry, while slowing growth in the US is hurting Mexico more, since the US is Mexico's main export market. However, Mexico has the best economic fundamentals in the emerging market, and is heavily undervalued right now, suggesting either a continued consolidation around the current low, or a rebound from this low. Fundamentally, this is a risky trade and could overshoot into the stop loss, but it could also be potentially very rewarding. Profit target I have set an initial profit target based on Fibonacci levels. I expect the second target to be met, and based on the fundamentals above and how they evolve in the coming weeks I will either move the stop loss up to the first profit target if the second is met, or I will close the trade there.
Long
by olly_price
Talk about rejection! Oil destined for $42.00Talk about rejection! Today we saw some crazy dollar strength. As of 3pm, the dollar had made a 100% retracement or 214 bps round-trip from this morning's ECI drop. The market gave a clear signal that it believes - or rather, more likely, wants , a Fed rate hike. That's all that matters, folks. Oil is heading lower. What's more, the technicals strongly support the move. This week we saw a two day counter-trend rally move oil up 6%. With today's price action, we have a firm rejection of the counter-trend rally, which means the downtrend is still intact and the move lower can proceed. Today, we also saw the futures break below the lows set prior to the counter-trend rally, a level that also corresponded with the 76.4% fib retracement of March's rally to 2015 highs. 100% is the next fib retracement level at 42.00, which falls within range of a fib extension zone b/w 41.55 and 43.25. The pace of the current downtrend from late June predicts 42.00 within 13 days. Keeping in mind the absolute and relative low levels of oil volatility (versus other asset classes) could cause that move to come much faster. A long vol, bearish options strategy might be a useful way to play the move. Next week I plan to take some profits in my 45 puts and roll into shorting the futures directly. Also, keep the Mexican Peso on your watch list. My macro thoughts are OIL --> CAD --> MXN.
FX:USOILShort
by simonsays452
1