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USDMXN

Elliott Wave Analysis: USDMXN Remains BearishHello traders! Today we will talk about USDMXN pair, in which we see quite clear bearish pattern from Elliott wave perspective. Looking at the daily chart, we can see a nice three-wave W-X-Y corrective rally within a higher degree wave (IV) and correction looks to be completed after recent sharp decline, which looks to be unfolding five waves down from the highs in the 4-hour chart. Five waves down from the highs indicate that market found the resistance and it's turning back to bearish mode, ideally back to lows for a higher degree wave (V). So, watch out for more weakness in the first half of 2022, we will just have to be aware of short-term a-b-c corrective pullback within downtrend. The main reason for a potential pullback within an a-b-c corrective recovery could be strong resistance on Crude oil, so if Crude suddenly slips following stock market sell-off, then USDMXN could face some rally, but probably temporary only with resistance in the 20.75 - 21.35 zone. Trader well! If you like what we do, then please like and share our idea. Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Short
by ew-forecast
2
USD/MXN: Lower Moves Now Must Test Important Support LevelsThe USD/MXN is near the 20.71000 level in early trading this morning as the Forex pair has continued to demonstrate an incremental ability to traverse lower. Speculators who have been pursuing selling positions of the USD/MXN since it hit apex highs of 22.15000 approximately on the 25th of November may think the Forex pair remains attractive from a bearish perspective. Support levels now in sight could prove to be important near term. Traders may have their eyes on the 20.65000 marks as a rather intriguing inflection point when long-term charts are glanced at based on the belief the USD/MXN may be slowly working its way back to a lower known range which was traded for much of 2021. However, traders may not want to get too optimistic quite yet. As the Christmas holiday gets ready to start, trading volumes will become quite thin and the lack of large transactions in Forex could cause the USD/MXN to stall. The trading to come may see volatile spikes in price up and down, but these will likely be demonstrated because of imbalanced positions which could make for choppy conditions which are often unpredictable. Day traders who want to participate with the USD/MXN are urged to use stop losses, which protect their positions against sudden fluctuations that can be dangerous when too much leverage is being used. The downward trend in the USD/MXN may also actually begin to experience a reaction if financial institutions believe the bearish trajectory within the pair has been too fast. Traders who continue to believe selling the USD/MXN is the right decision should monitor resistance levels near the 20.76000 to 20.79000 levels; if these are sustained this could prove important. Traders should not be overly ambitious within the USD/MXN in the coming days. Tight range trading should be expected with the very real potential for a sudden spike to take place periodically. Traders wagering on the USD/MXN should also use solid take profit orders to make sure if a sudden run in value occurs, that they can be cashed out and the profits accounted for within their accounts. Traders who believe the holiday season will provide an opportunity to simply take advantage of tight ranges which will develop in the coming days cannot be faulted. Mexican Peso Short-Term Outlook Current Resistance: 20.79800 Current Support: 20.68000 High Target: 20.89700 Low Target: 20.47000
Short
by SmoothJB
USD/MXN: Movement Lower Trades Near Important Support LevelsThe USD/MXN has experienced a volatile trading range the past handful of days in the wake of the Omicron coronavirus news. After touching a high water mark of nearly 22.16000 on the 26th of November, the USD/MXN has seen selling and a low of 21.11000 approximately was tested yesterday. A reversal upwards was demonstrated after Wednesday’s lowest depths, and the high for yesterday was displayed near the 21.51000 mark afterwards. However, after hitting this high and seemingly running into a strong amount of headwinds, the USD/MXN did turn lower again and the Forex pair is currently trading slightly below the 21.40000 level. The global Forex market continues to exhibit choppy conditions as financial houses try to achieve a calmer trading landscape, but it is likely the next couple of days will continue to remain rather challenging. Intriguingly, the USD/MXN did test important support ratios when its low of 21.11000 was made. The USD/MXN was also trading near this juncture on the 23rd and 24th of November, which was before the Omicron news caused a hysterical reaction in the markets. The notion that this level was acting like support before the outbreak of recent headlines suggest the juncture of 21.11000 may be seen as an important inflection point. Traders may believe this level could be tested again in the near term, and use it as a potential target if they are selling the USD/MXN. However, it should be pointed out that the 21.11000 mark is actually a distance away from the current price of the USD/MXN. Short-term traders may produce solid results speculatively if they wager on selling action when current resistance levels come into sight, and then aim for nearby support around the 21.32000 to 21.29000 marks. Volatility is likely to remain a staple of USD/MXN trading in the short-term and traders should certainly not be over confident. Bullish traders looking for more upside to develop should also practice caution. Waiting for support levels to be touched and then igniting buying positions may prove to be worthwhile, but like all Forex traders under the present conditions, they are advised not to be overly ambitious. Focusing on the short term for all traders over the next couple of days, may prove to be a healthy trait which helps limit exposure to potentially volatile moves in the USD/MXN. Mexican Peso Short-Term Outlook Current Resistance: 21.41000 Current Support: 21.28000 High Target: 21.53000 Low Target: 21.12000
by SmoothJB
USDMXNThis exotic currency pair has been in a bullish trend over the past few weeks, due mostly to USD strength. The news of the origin of a potentially dangerous coronavirus variant emerging in South Africa at the end of last week caused many countries to shut their doors on South African and other African travel, and strongly hit the price of Crude Oil on fears of lesser demand, of which Mexico is a major exporter, causing the Mexican peso to nosedive and send this pair sharply higher to a new 1-year high price on strongly above-average volatility. Unless it is quickly discovered that the omicron variant should not be as problematic as feared, it is hard to see how Crude Oil and henceforth the Mexican peso will not make a further sharp fall over the course of this week. The Japanese yen is stronger than the USD so short MXN/JPY will probably be a better trade if your Forex broker offers access to it.
Long
by SmoothJB
3
USDMXN to Rally to 22Trend Analysis The main view of this trade idea is on the 2-Hour Chart. The forex cross USDMXN is currently in an ascending triangle setup with resistance observed around the 21 price level and the support trend line seen around the higher lows of 20.12 and 20.25 respectively. Expectations are for USDMXN to rally towards the 22 price level. Failure of this move will be seen if USDMXN declines below 20.25 On the longer termed Daily Chart USDMXN is trending higher, with the next level of resistance observed around 21.50 Technical Indicators There has been positive crossovers on USDMXN’s short (50-MA), medium (100-MA) and long (200-MA) term fractal moving averages. USDMXN is also trading above these respective MAs. The RSI is above 50 and the KST is in a positive mode. This indicates a bullish move in USDMXN. Recommendation The recommendation will be to go long at market, with a stop loss at 20.25 and a target of 21. This produces a risk/reward ratio of 1.75. Disclaimer The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to USDMXN.
Long
by Ceddy86
USDMXN. P-Modeling Pt A. The Peso Derivative Safe Haven for USD Welcome Hyperspace Travelers, This is a time-series analysis of the macro 1 week timeframe of USDMXN. It is of my opinion that the Peso is going to see a nasty hyperinflation cycle. TP: 31.1 In previous instances, a rising DXY is a catalyst for a rising Peso; as weight of the co-variance of R becomes redistributed fundamentally. A rising USD, at specific cyclic points, proposes that a major US equities crash, paired with a re-weighting of forex co-variance will cause a hyperinflation cycle in the Peso. In a way, in 2008-2009, it helped strengthen the Peso. In 2020, it also helped strengthen the Peso. I say strengthen because weighted distributions will allow the Peso to have more "weight" against other currency pairings. This is a hallmark feature of strength. Higher weight distribution of co-variance of the overall monetary pool into Peso makes it stronger. Think of Peso as a derivative. For many years, the Peso has slowly accumulated "weight" from the primary pairings against USD. Upon a substantial rise of DXY. The MXN Peso becomes a derivative safe haven for the USD. Thus we hyperinflate it. As previously shown at times of DXY strength 2008 and 2020. Overall this is great for the Peso on the longer term scale. But not so great for the short term of the Peso for Mexican citizens. We can see after the hyperinflation we engage in a few years of re-equalizing the slope at 32 degrees. I may absolutely be wrong. But I really think this makes perfect sense. Thanks for Pondering the Unknown with Me, Glitch420
Long
by Glitch420
1