USDMXN On a Downtrend

USDMXN CHART PRICE – USDMXN DAILY

The Mexican peso took some room over the USd in the previous trading session and it looks like this downtrend could continue, the price is getting closer to its support level at 22.163 after getting very close to its resistance just a few days ago. The Relative Strength Index dropped from 54 to 48% which its a good indicator that the downtrend can be expected, once it gets closer to 30% we would close the short position as it would be considered oversold, also we need to monitor how the price behaves once it gets closer to the support level as it could have a breakout or bounce back up to the resistance level, Bollinger bands look are wide, at the beginning of the new trading session they are starting to get just a bit closer together, while the price is trading under the Ichimoku cloud, technical indicators are reading a bearish trend in the short term.

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.