(Buy) USDMXN Technical Analysis for April 30, 2018Hello Traders,
First and foremost, I’m net bullish the USD and as such, I will be buying whenever there is an undervaluation at any USD pair in our entry chart. So, the Peso being one of them means I shall be continuously looking for loading points in the 4HR chart.
Taking a top down approach, we are seeing hints of higher highs in the USDMXN weekly chart where USD bulls are loading up at key support line drawn from last year lows and recent lows. That’s not all, there appears to be a bullish divergence pattern between price action and stochastics which has already printed a buy signal from around the oversold territory.
Furthermore, it appears that USD bulls are trading within a break out pattern and since that bullish engulfing pattern printed by mid April, buyers have been persistent and actively pushing the USD higher.
So, with a stochastic buy signal in the weekly, we have the same pattern towing in the 4HR chart. Here, we have a nice stochastic buy signal and a couple of nice higher highs relative to the lower BB. Solely based on this, I shall recommend USD buys with stops below this week’s lows at around 18.60.
Because of this technical set up, this is my USDMXN trade plan:
Buy: 18.77
Stop Loss: 18.60
Take Profit: 19.10, 19.85-this year’s highs.
Let me know what you think. Have a wonderful trading day.
