MXN Getting Closer to Support

USDMXN CHART PRICE – USDMXN DAILY

USD has lost some ground in the last 3 days against the MXN, it did not reach its resistance level before it started to drop, there has been a lot of activity in this pair, just today it started the day with gains but currently it sits at 22.47, almost 400 pips less than the highest it reached just today, the Relative Strength Index has been dropping as well in the last 3 days which is only natural, the client sentiment changed and we find the RSI at 46%, moving averages indicate a downtrend but the price is currently trading below the Ichimoku cloud, these are mixed signals, but watching the RSI and how close the price is from reaching its resistance I believe that the mexican Peso will get stronger in the next few days, there are some fundamentals that support our theory, on Wednesday Mexican president visited the US and the meetings with th US president seem to have gone very well, we definitely see the price going as low as 22.16 but we normally set the Take Profits at 80% of the difference between the resistance and the support.

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.