USD/MXN Short Idea - Death Cross Ahead and 700+ pips?
USD/MXN has been giving us some serious pips since November! We captured over 1,400 on the latest sell-off, followed by 400 plus pips recently on a short-lived buy. If you refer to my linked idea below related to the reversal after the drop, you will see in my updates how the 200 MA provided resistance, to which I immediately closed my buy position. This area also happened to be a key zone in the market as highlighted. Price respected this area of resistance this week, right at the 200 MA touch on the daily time frame.
What I see now is a possible death cross. We see a kiss and possible cross of two key moving averages, the 50 MA cross over the 200 MA to the downside. This could mean a death cross for this pair = more selloff, to the tune of another 700 pips! We also see the trend line,which as highlighted, price has respected. If this pair continues to sell off we could see price hit the next lowest key zone (highlighted), which also would serve as an area of confluence at the next key zone in the market. Based on the last bull run attempt it just doesn't appear that the bears are too ready to retreat and give way to the bulls. We see a little indecision accordingly so far, looking at the latest daily candle, and the bearish retreat on the lower time frame.
Please view my linked ideas below along with my commentary in each idea along the way. Please also like and offer your comments. It's a good idea to pay close attention to my updates as I observe price action. I'm a student always and love to study the markets.
As always trade at your own risk. This idea is for demonstration and educational purposes only. Always use proper risk management.
What I see now is a possible death cross. We see a kiss and possible cross of two key moving averages, the 50 MA cross over the 200 MA to the downside. This could mean a death cross for this pair = more selloff, to the tune of another 700 pips! We also see the trend line,which as highlighted, price has respected. If this pair continues to sell off we could see price hit the next lowest key zone (highlighted), which also would serve as an area of confluence at the next key zone in the market. Based on the last bull run attempt it just doesn't appear that the bears are too ready to retreat and give way to the bulls. We see a little indecision accordingly so far, looking at the latest daily candle, and the bearish retreat on the lower time frame.
Please view my linked ideas below along with my commentary in each idea along the way. Please also like and offer your comments. It's a good idea to pay close attention to my updates as I observe price action. I'm a student always and love to study the markets.
As always trade at your own risk. This idea is for demonstration and educational purposes only. Always use proper risk management.
Comment:
Butterfly pattern potential
Trade closed manually:
Took profits. Price reached trendline; possible morning star. Will look to enter at a later time depending on price action
Trade active:
Price violated trendline. I would look for a retest and continuation as noted below
Trade active:
I believe we will see this play out to key demand zone as noted.
Trade active:
Still holding for long term; can scalp pullbacks as well
