Our free forex signals service trade today is a buy order on the USD/MXN pair.
The USD/MXN price moves somehow sideways in the short term. Also, it has developed a potential Falling Wedge pattern which could announce that the downside movement ended. Still, we need strong confirmation before considering going long. At the time of writing, the bias remains bearish.
Only a larger rebound registered by the Dollar Index could really announce a larger growth on the USD/MXN pair. In the short term, the currency pair continues to be bearish after the US retail sales data came in worse than expected on Friday.
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Also, Industrial Production, Prelim UoM Consumer Sentiment, and the Capacity Utilization Rate indicators reported worse than expected data as well.
Today, the US banks are closed in observance of Martin Luther King Day. Technically, the pair stands below strong upside obstacles, so the bearish pressure remains high as long as it stays under these obstacles.
US Empire State Manufacturing Index
Fundamentally, the US is to release the Empire State Manufacturing Index tomorrow. The indicator is expected at 25.0 points versus 31.9 expected. Still, I don’t think that it will have an important impact.
As you can see on the h4 chart, the rate could develop a strong leg higher only if it makes a valid breakout above the downtrend line and above the weekly pivot point 20.365.
Free forex signals – BUY USD/MXN at 20.386
Free forex signals entry price and takes profit
Instrument: USD/MXN
Order Type: BUY STOP
Entry price: 20.386
Stop Loss: 20.265
TP1: 20.626
My Risk: 1%
Risk / Reward Ratio: 1:2
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