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USDMXN posts 11-day low; bearish cross in place.

USD/MXN is extending its declines for the sixth straight day, hitting an 11-day low of 18.5853 earlier on Friday.

The RSI has moved below the 50 neutral-perceived level and continues to decline. This is indicative of bearish short-term momentum for the pair.

Additional losses could meet support around the current level of the 200-day moving average at 18.4508, with a downside violation bringing into view the five-month low of 18.2978 that was recorded in late January.

On the upside, the range around the 23.6% Fibonacci retracement level of the December 26 to January 25 down-leg at 18.6735 might be currently providing resistance. Further above, a resistance area could be formed around the 50-day MA at 18.7863 and the 38.2% Fibonacci mark at 18.9096 (this is where the 100-day MA also lies at the moment).

The medium-term picture is looking mostly bearish, with price action taking place below the 50- and 100-day MA lines, while a bearish cross was also recorded in late February when the 50-day MA moved below the 100-day one.

Overall, both the short- and medium-term outlooks are looking negative at the moment.

USD/MXN 09/03/2018 | EconAlerts



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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

source: XM

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