I can see why you would want to go long looking only at the chart. You are missing two things. The dollar is on a bull run, and USDMXN didn't participate at this bull run, so why go long USD via a strong currency when you can pick a weak currency like JPY or Euro? Secondly, did you consider how much carry you are going to pay for this trade? If you consider the carry, I believe the risk reward won't be more than 1.5, but that's only an approximation.
JohnYoon
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Hi Vlad.
Yes all great points.
I like the chart setup. I am just looking at currencies that have some potential in case of big USD rally. Most of the other currencies already moved so much.
But yes, the carry is huge.
EUR and JPY moved a lot recently and I am hesitating opening more trades in there, unless it corrects a bit.