The USD MXN is on the move. Is trading forex worth it? Take a look and see what is in store for you to add to your forex account this week. It is all about PIPS, PIPS, and more PIPS …
Daily charts for the USD MXN
The USD continues to exhibit signs of strength overall in forex and the Mexican Peso may be able to feast upon the notion of more bearishness via the Dollar will emerge mid-term. The Mexican has dropped a total of 18,815 pips and is sitting in between the .236 and the .382. It is on the way back up and hasvcrossed a down trend line.The rsi is in the middle and making its’ way up to the sell zone. This pair should reach the .500 at 20.92096 giving 2,407 pips and it should go to the .618 at 21.06382 giving 4,000 pips.
Hourly charts for the USD MXN
The Mexican has climbed 2,556 pips and is now retracing sitting on the .236 at 20.62378. It should reach the .392 at 20.58584 giving 309 pips and if it goes down to the .618 at 20.52479 this would give 907 pips. The rsi is just below the sell zone and headed down to the buy zone.
Important USD MXN Levels to follow
MEXICAN INFLATION (CPI) REPORT OVERVIEW:
- The November Mexican inflation (CPI) report will be released on Wednesday, December 9 at 13:00 GMT. A slight moderation in price pressures is anticipated.
- USD/MXN rates have broken below the key psychological level of 20.0000, continuing its losing ways since the US presidential election.
- Retail trader positioning suggests a bullish bias to USD/CAD rates, which may portend poorly for the Mexican Peso.
USD MXN in the news
The November Mexican inflation (CPI) report will be released on Wednesday, December 9 at 13:00 GMT. According to a Bloomberg News survey, a slight moderation in price pressures is anticipated with the headline inflation rate due in at 3.41% from 4.09% in October. While weaker price pressures are not surprising in the face of the coronavirus pandemic, the changing composition of Banxico suggests that weaker inflation data may be the excuse needed to restart a rate cut cycle.
At the start of the week, Mexican President Andres Manual Lopez Obrador nominated Galia Borja Gomez, the Treasurer of the Mexican Finance Ministry, to join Banxico has deputy governor. Historically, Banxico has had a hawkish tilt, seeking to keep price pressures down even if it meant constraining growth. But the ascent of Gomez to deputy governor, coupled with downside price pressures, may be cultivating an environment where Banxico seeks to tamp down the Mexican Peso.
There has been considerable downside in USD/MXN rates in recent weeks, with the pair continuing its descent within the parallel downtrend dating back to the coronavirus pandemic high set in April. Since the test of channel resistance at the start of November, which came in the form of a bearish outside engulfing candle, USD/MXN rates have been biased lower.
Bearish momentum has been strong, with USD/MXN rates below their daily 5-, 8-, 13-, and 21-EMA, which is in bearish sequential order. But daily MACD is trending higher below its signal line, while Slow Stochastics are perking up in oversold territory. Still, in the past two weeks, two significant Fibonacci retracement levels serving as critical support have broken: the 76.4% retracement of the 2020 low/high range at 20.2349; and the 38.2% retracement of the past 10-years of trading low/high range (April 2011 low/April 2020 high) at 20.3215.
Were USD/MXN rates to retake the 20.2349/20.3215 area, the daily 5-, 8-, 13-, and 21-EMA envelope would be broken, giving credence to a bullish reversal. Nevertheless, the broader context of any USD/MXN price action would be in context of the broader downtrend, suggesting that rallies may look to be sold in the foreseeable future.
Is trading Forex worth it?
Do you agree that the USD MXN could boost your trading account towards the end of 2020? And back to my main question: Is trading Forex worth it? Indeed, I think so, and I’m super excited to share my best free forex signals with you, and I hope that everyone can maximize their profits based on my accurate forex signals.
Are you happy that I shared my signals with you here in the Forex and Profits community? What do you think will happen next with the USD MXN currency pair? I’d love to know what you thought of the post. Feel free to like, share and comment in our Forex and Profits Club on Facebook.
We provide new trading analysis every week
Was this article helpful for you? What do you think of the EUR USD and AUD USD currency pairs? We often use Pivot points in our analysis. I have already written an article where I explained in detail how target trading works.
I’d love to know what you thought of this article. Don’t forget to go to our facebook page and leave your comments.
Before participating in Foreign Currency Trading (Forex Market) you must consider carefully the risks of the market, which has big rewards potential, yet is also extremely risky. Consider all the risks carefully before investing in the Forex Market. Remember that all the information and signals, prices and trade recommendations provided here on Forex and Profits is only general information and market commentary, thus, it does not incorporate investment advice.