Our free forex signals service trade today is a buy order on the USD/MXN pair.
The USD/MXN pair was in a strong corrective phase in the last weeks but now it has reached a strong support zone. In the short term, the currency pair moves somehow sideways. The pressure remains high, so only a major bullish pattern could announce a new leg higher. At the time of writing, the USD/MXN pair is traded at 20.979 below 21.054 today’s high.
Surprisingly or not, the pair slipped lower even if the Dollar Index is strongly bullish. DXY’s further growth could help the USD to appreciate versus its rivals.
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US Consumer Price Index 0.7% Growth Expected!
Today, the fundamental factors could drive the pair. The US is to release its CPI which is expected to register a 0.7% growth in November and the Core CPI which could report a 0.5% growth compared to 0.6% in the previous reporting period. Furthermore, the Prelim UoM Consumer Sentiment is expected to climb from 67.4 points to 67.9 points.
The volatility will be high around these economic figures. The USD/MXN pair could register sharp movements in both directions.
Technically, the USD/MXN pair reached the 20.901 level which stands as a static downside obstacle. It has jumped above the major downtrend line but it has found resistance at the minor downtrend line. Personally, I’ve drawn an ascending pitchfork hoping that I’ll catch a new leg higher within this technical tool.
Free forex signals – BUY USD/MXN at 21.093
Free forex signals entry price and takes profit
Instrument: USD/MXN
Order Type: BUY STOP
Entry price: 21.093
Stop Loss: 20.855
TP1: 21.592
My Risk: 1%
Risk / Reward Ratio: 1:2.1
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