Friday, February 7, 2020

Bullish Setup On USDMXN

Marco Tosoni

FХ Strategist & Financial Commentator

During the last 6 months, this pair has produced a strong bearish rally, with the quotes to drop from 20.50 area to yesterday’s bottom, around 18.50 testing the bottom area of August and October 2018.

The Volatility is still remaining rather poor, despite of a modest rise over the last two months and in particular in the last three weeks, with a significant increase of the average daily range, that is appearing after the period between the second half of December and the first of January, when the bearish trend was characterized by the lowest volatility of the last five years.

Looking at the RSI, we can see a well-structured bullish divergence, that could finally bring to a bounce of the US dollar, especially considering the last three false signals occurred during the last oversold momentum set on October December and January.

The bullish setup would be confirmed with the breakout of yesterday’s top around 18.70, with a target price between 19 and 18.95 on 23% Fibonacci retracement.

The divergence would be denied in case of a weekly closure below 18.40, where we can detect the very bottom of August 2018.

As always I recommend to trade carefully and to plan at best every move. Have a good trading and see you for the next video.

Watch Full video

Recent Articles

Main Support On EURGBP

Main Support On EURGBP Marco Tosoni FХ Strategist & Financial Commentator The weakness of the...

Main Support On EURCAD

Main Support On EURCAD Marco Tosoni FХ Strategist & Financial Commentator The technical...

Main Support On EURUSD

Main Support On EURUSD Marco Tosoni FХ Strategist & Financial Commentator After 6 consecutive...