USD/MXN Currency Pair Forecast

Red day on Friday for USD/MXN currency pair after losing 0.0765%
(Updated on May 31, 2024)

USDMXN Signals & Forecast

The USD/MXN currency pair holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the currency pair has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $16.79 and $16.87. A breakdown below any of these levels will issue sell signals. 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. A sell signal was issued from a pivot top point on Thursday, May 30, 2024, and so far it has fallen -0.0765%. Further fall is indicated until a new bottom pivot has been found. USD/MXN gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The currency pair had a Golden Star Signal on Wednesday, May 29, 2024 in the long-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the currency pair in question.

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

USD/MXN finds support from accumulated volume at $16.96 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved $0.172 between high and low, or 1.02%. For the last week the currency pair has had daily average volatility of 0.575%.

Our recommended stop-loss: $16.51 (-2.84%) (This currency pair has low daily movements and this gives low risk. There is a sell signal from a pivot top found 10 days ago.)

Trading Expectations (USDMXN) For The Upcoming Trading Day Of Monday 3rd

For the upcoming trading day on Monday, 3rd we expect USD/MXN to open at $16.99, and during the day (based on 14 day Average True Range), to move between $16.87 and $17.11, which gives a possible trading interval of +/-$0.119 (+/-0.70%) up or down from last closing price. If USD/MXN takes out the full calculated possible swing range there will be an estimated 1.40% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $17.00 (0.03%) than the support at $16.96 (0.19%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is USD/MXN currency pair A Buy?

USD/MXN holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Current score: -0.644 Hold/Accumulate Unchanged

Predicted Opening Price for USD/MXN of Monday, June 3, 2024

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