MXN Could Break Support

USDMXN CHART PRICE – USDMXN DAILY

The Mexican peso could reach and break its support level at $22.16 in the next few days or perhaps reopen with a gap on Sunday trading session. Price is barely trading under the Ichimoku Cloud meaning we could expect a downtrend, although Bollinger Bands are narrow right now we can expect some volatility since Friday trading sessions are normally slow, we would see much more activity in the reopening.

Relative Strength Index went down from 54 to 48% this is because more traders are going short on this pair, we need to keep an eye on this level the lower it goes the stronger the trend could get, once it reaches a point lower than 30% we could close our positions since the pair would be considered oversold at that point. Moving Averages are still moving downwards the long term is following the short term line hence we can expect a downward trend

This post does not provide Financial Advice for traders, its merely purpose is education, use all the information available from different Analysts and build your own strategy, trading is not for everyone, you should only trade with money you can afford to lose, past performance is not an indicator of future results.