Post-breakout pullback into FIB zoneI have been taking a look into dollar index and a strong push up is very likely next 2 weeks,
considering all the conditions of what happened:
1. Breakout of descending daily supply trendline (breakout candle - strong bullish, second post breakout candle strong bullish)
2. Trendline breakout retested (important factor: price stayed above the trendline after the retest - uptrending confirmed)
3. Classic pullback into Fib zone (50-61) and retest of last month roof R4 (March breakout level).
4. Demark breakout slingshot projection gives target near April R4 confirming the breakout and April camarilla levels. Also, April resistance CAMR3 coincides with 78 fib level.
In the Fib zone we do have untested missed monthly pivot - the question is if price is gonna test it? But then again - missed pivots mark the starts of strong trends.
At any case, push back under the trendline does not make much sense.
USDMXN
USDMXN EDITEDTAL VEZ ESTABA VIENDO EL CANAL CON OTROS OJOS, ESPERAMOS QUE LA VELA DIARIA TERMINE Y SI SE MANTIENE EN EL CANAL POSIBLEMENTE PODREMOS BUSCAR ACCION DE PRECIO Y ENTRAR EN LONG HASTA LA PARTE SUPERIOR DEL CANAL .
LA ECONOMIA DE USA ES DEBIL SI, PERO LA DE MEXICO ES AUN MAS DEBIL, Y EL USD SIGUE SIENDO "LA CAMISA MAS LIMPIA DEL CANASTO" COMO ALGUNOS DICEN, DENTRO DE TODO ES UNA ECONOMIA FUERTE Y HA BAJADO SUS TASAS AUN MAS PARA SOPORTAR LA CRISIS.
USDMXN Pattern like the 2008 crisis. Opportunity for +15% profitThe pair made a strong Parabolic Rise in March pushing the 1D chart to its limits. Now technicals have found a normal balance (RSI = 58.931, MACD = 0.972, ADX = 49.001) as the price is trading on a range. This is similar to the 2008 trading pattern of the Mortgage Crisis, when after a Parabolic Rise, USDMXN entered a range (was an Ascending Triangle then) before a new Top.
So far it appears the the COVID pandemic is repeating the same psychological patterns of the 2008 Mortgage Crisis. QE and stock market fear are the key factors. If USDMXN repeats the whole sequence then we can expect the next Top to be roughly +9% from the current one which makes for a $28.00 target. That is roughly a +15% profit opportunity from the current levels.
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USDMXN ShortLooking at Weekly time frame we can see that we have three wicks that have formed indicating a strong resistance level. the price has been going up for a while now and by switching to the 4H TF we can see that it have failed to form a Higher high. adding to that the priceline will be reaching 24.6000 resistance level and that's where I will place my short. trade at your own risk and happy trading.