CLP/MXN Currency Pair Forecast

Weaker technical forecast for CLP/MXN as currency pair downgraded to Buy Candidate.
(Updated on May 17, 2024)

CLPMXN Signals & Forecast

The CLP/MXN currency pair holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $0.0183 and $0.0177. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, May 01, 2024, and so far it has risen 5.71%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may not be. The very low volume increases the risk and reduces the other technical signals issued.

Support, Risk & Stop-loss for CLP/MXN currency pair

On the downside, the currency pair finds support just below today's level from accumulated volume at $0.0173 and $0.0170. There is a natural risk involved when a currency pair is testing a support level, since if this is broken, the currency pair then may fall to the next support level. In this case, CLP/MXN finds support just below today's level at $0.0173. If this is broken, then the next support from accumulated volume will be at $0.0170 and $0.0168.

In general the currency pair tends to have very controlled movements and therefore the general risk is considered very low. However, be aware of low or falling volume and make sure to keep an eye on the currency pair During the last day, the currency pair moved $0.0004 between high and low, or 2.19%. For the last week the currency pair has had daily average volatility of 0.566%

The CLP/MXN currency pair is extremely overbought on RSI14 (76). Normally this may pose a good selling opportunity but since the currency pair has broken the trend up, the chance for a major correction due to high RSI is very small as the currency pair will find support at the trend broken. Since the CLP/MXN has been rising for 8 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the currency pair is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: $0.0178 (-4.07%) (This currency pair has low daily movements and this gives low risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 12 days ago.)

Trading Expectations (CLPMXN) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect CLP/MXN to open at $0.0184, and during the day (based on 14 day Average True Range), to move between $0.0184 and $0.0188, which gives a possible trading interval of +/-$0.0002 (+/-1.16%) up or down from last closing price. If CLP/MXN takes out the full calculated possible swing range there will be an estimated 2.32% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $0.0173, some $0.0012 (6.69%) from the current price of $0.0186, our system finds the risk reward attractive.

Is CLP/MXN currency pair A Buy?

Several short-term signals, along with a general good trend, are positive and the currency pair has broken the rising trend up, which indicates an even stronger rate of rising. We can conclude that the current level may hold a buying opportunity as there is a fair chance for CLP/MXN currency pair to perform well in the short-term period. Due to a possible false trend-break listing currency pair as pure buy candidate is held back. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this currency pair since the last evaluation from a Strong Buy to a Buy candidate.

Current score: 4.076 Buy Candidate Downgraded

Predicted Opening Price for CLP/MXN of Monday, May 20, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.