6 Asset Classes - 16 Trading Platforms - Over 1000 Instruments.
USDMXN slashed in half the gains it earned from July 31 in four days, with the price diving under the eight-month peak of 20.251 and through all the simple moving averages (SMAs) and the Ichimoku cloud.
The technical indicators are suggesting a revival of the down move, with the MACD falling back beneath its trigger in negative territory and the RSI pointing downwards below its 30 oversold mark. More importantly the 42-period SMA seems to be headed for a bearish cross of the 100-period SMA, while the Tenkan-sen has distanced itself from the Kijun-sen, of which both could strengthen the negative outlook.
If the bears take to the frontline and restart the move south by shoving below the 19.510 support level, a test of the 61.8% Fibonacci of 19.390 of the up-leg from 18.858 to 20.251 could unfold. Lower, the 19.340 barrier could draw traders focus, while additional losses below that point would turn the bias from positive-to-neutral as the price approaches the 76.4% Fibo of 19.187.
If the bulls take control and manage to reverse the price above the resistance region of 19.510 to 19.600, the next obstacle could be the 38.2% Fibo of 19.720. Above that, the 50-and 100-period SMAs could provide some friction around 19.870 and before the 23.6% Fibo of 19.922 takes over. Overcoming the latter, the bulls would aim next for the 20.000 psychological number.
In brief, USDMXN is looking bearish in the short-term, while in the medium-term picture the outlook remains positive as long as the price keeps trading above 19.34.
forexusdmxnRisk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.
By clicking the "Enter" button, you agree for your personal data provided via live chat to be processed by Trading Point of Financial Instruments Limited, as per the Company's Privacy Policy, which serves the purpose of you receiving assistance from our Customer Support Department.
If you do not give your consent to the above, you may alternatively contact us via the Members Area or at support@xm.com.
All incoming and outgoing telephone conversations, as well as other electronic communications (including chat messages or emails) between you and us will be recorded and stored for quality monitoring, training and regulatory purposes.