Hi guys!
We are looking at an excellent LONG opportunity with the USD/MXN. We will be looking at a conservative take profit at 20.213 and a riskier take profit at 21.87. We will also be putting our stop loss at 18.65. The chart shows a bullish pennant, which will hint at a bull run in the near future. The first take profit is indicated by the 0.786 fibonacci level, while the next take profit level would be well above, at 20.213 which is just before the 1.000 fibonacci level. On the other hand, the stop loss will be placed at 18.65, which shows the clear violation of the support level as well as previous structure support.
The fundamental reason for this short idea is due to the slowdown in the manufacturing industry, which Mexico is largely dependent on. China, US and Europe is facing a slowdown in their manufacturing industry, which spells trouble for Mexico as these are the main countries that they export to.
On the other hand, US' currency will also be appreciating due to the future interest rate cuts as speculated by many and hinted at by the Fed. A fall in the interest rates will further strengthen the dollar in the long run and this will greatly help with the inflow of foreign currencies into the greenback. The positive sentiments in light of the trade war talks will also help to strengthen the US and China relationship.
Once again, do let me know your thoughts or if there are any criticisms about my trade idea as I am very open to learning from you guys.
Have a great one!
We are looking at an excellent LONG opportunity with the USD/MXN. We will be looking at a conservative take profit at 20.213 and a riskier take profit at 21.87. We will also be putting our stop loss at 18.65. The chart shows a bullish pennant, which will hint at a bull run in the near future. The first take profit is indicated by the 0.786 fibonacci level, while the next take profit level would be well above, at 20.213 which is just before the 1.000 fibonacci level. On the other hand, the stop loss will be placed at 18.65, which shows the clear violation of the support level as well as previous structure support.
The fundamental reason for this short idea is due to the slowdown in the manufacturing industry, which Mexico is largely dependent on. China, US and Europe is facing a slowdown in their manufacturing industry, which spells trouble for Mexico as these are the main countries that they export to.
On the other hand, US' currency will also be appreciating due to the future interest rate cuts as speculated by many and hinted at by the Fed. A fall in the interest rates will further strengthen the dollar in the long run and this will greatly help with the inflow of foreign currencies into the greenback. The positive sentiments in light of the trade war talks will also help to strengthen the US and China relationship.
Once again, do let me know your thoughts or if there are any criticisms about my trade idea as I am very open to learning from you guys.
Have a great one!