MXN/USD Bottom 16.2424. Range break above 16.4047, below 16.0025. Overbought sell point 16.3787. In case a miss next 16.3925, 16.4064. Note 16.4064 bumps against a range break at 16.4047. The main sell point 16.3787. We’ve hardly had a miss in MXN and every trade so far saw good profits. The slight misses lately could possibly be due to China. If China had even slight interest rate changes along with exchange rate changes then that’s the answer. It doesn’t take very much to skew markets. When one market goes out of sync then all markets are automatically off kilter because the world and markets are so deeply intertwined.
Strategy. Longs above 16.3241, target 16.3787. Then reverse short to 16.3241. Below 16.3240 then target 16.2832 and bottom at 16.2424. Points on the way up, 16.3265, 16.3473, 16.3681, 16.3787.
Continued thank you to my friends at Fxstreet
Brian Twomey, Inside the Currency Market, btwomey.com