Usually I am a buyer of descending (or falling) wedges when we reach support as I typically would be looking for an eventual breakout higher. However, this time may be different. The reason why is as we are hitting support, the pair is also trading below the long term 61.8% Fibonacci retracement of the February 2020 lows (pre covid) to the April 2020 highs (post...
EURMXN LONG - Buy Entry - D1 Chart
Entry Price: Buy @ Market
Stop Loss: 23.34243
Take Profit: 23.99506
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EURMXN seems to be attempting a retest of the downtrend after it latest attempt to break out of the wedge. There is a history of false breaks over the last 3 years, but when it goes it really goes. Stochastics look a bit oversold in the s/t so the downtrend might hold this time and fuel a move higher.
$EURMXN is making higher lows in a descending wedge which is typically a reversal setup (higher in this case). There is a strong inverse relationship with risk assets (SPX in this case) so a move above 24.1700 would be a very bullish event.