EUR/MXN - Opportunities! Technical outlook towards EUR/MXN
We were messaged to analyse this pair, since we last looked at this pair was July - Great momentum it has had. It was 1hr chart this time, I am going through daily - Why?
***Higher time frame indicates shorter time frame of movement! ***
Technical outlook:
Pattern wise - we are being squeezed within price action of a triangle formation but within that we do have a smaller bullish flag occurring which if you go through 4 hr it hasn't broken towards upside yet and we are at support of this pattern.
Shorter Trade Plan: Going towards 4hr you could add Fibs retracement and the target for this bullish flag would be 26.52767 and that's the resistance of this formation as well as top of the range is has been for while. (Following the pattern and inner small flag pattern) For further confirmation a close above 50 EMA.
Longer term trade plan: You could play the shorter role of the 4hr and even 1hr following the channel down or break out- However, longer term looking at the daily you could wait for a break to either direction, adding alert to resistance and support areas of the pattern, which ever way it breaks from the yellow arrows draw, I have measured the pattern length. On patterns I like to make sure it's a real break of the range so I would wait for break out , get in on the pull back and then take the trade to whichever direction it goes towards.
Keep in mind - MXN is an EM currency, if you are interested to look more in depth an advanced view look at MSCI.
(Just a trade idea, not a recommendation)
All the best,
Trade Journal
