We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • (Asia AM) The Japanese #Yen and US Dollar sank as the Australian Dollar rose despite escalating US-China tensions over Hong Kong. $USDJPY may be readying to turn lower after clearing support - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/05/26/Yen-Sank-Despite-US-China-Hong-Kong-Tensions-USDJPY-May-Fall.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/GxJ7D7W5Ov
  • RBNZ's Orr: Sees 'more room to go' on home loan interest rates -BBG
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here:https://t.co/LkEFJViPWY https://t.co/6QH27c5ZHS
  • RBNZ's Orr: Expects credit demand to lift and bank lending to match greater credit demand -BBG
  • RBNZ Governor Adrian Orr: Sees more room for banks to increase lending, banks have done well with loan restructures -BBG $NZDUSD #RBNZ
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/12:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/AyCMqK52oa
  • BoC's Poloz: Negative rates needed only in extreme conditions, extreme conditions may happen if fiscal policy not used -BBG $USDCAD
  • S&P500: Still, risks to the rally remain so traders will have to discern whether this is an honest breakout or a mere head-fake higher. Get your #equities market update from @PeterHanksFX here:https://t.co/zDlsun6VIF https://t.co/IQ1ITcVj7I
  • Very interesting to see the 'pro-risk' Australian Dollar diverge with the #SP500 during Tuesday's Wall Street session. #USD struggled to capitalize on its 'safe-haven' appeal as stocks retreated. Gentle reminder that asset relationships and traits are not always absolute $AUDUSD https://t.co/bs8uXo6q6S
  • $EURUSD Daily Pivot Points: S3: 1.0809 S2: 1.0858 S1: 1.0881 R1: 1.093 R2: 1.0957 R3: 1.1007 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
USD/MXN Achieves Bullish Breakout, USD/ZAR Tests New Highs

USD/MXN Achieves Bullish Breakout, USD/ZAR Tests New Highs

2020-04-24 01:00:00
Dimitri Zabelin, Analyst
Share:

US Dollar, Mexican Peso, South African Rand, USD/MXN, USD/ZAR – TALKING POINTS

  • USD/MXN could be on verge of bullish spike after key technical levels broke
  • Pennant continuation pattern suggests USD/MXN may rise to around 30.780
  • USD/ZAR tests new highs as US Dollar prevails in virus-shaken environment

US Dollar Outlook vs Mexican Peso

USD/MXN may be on the verge of a bullish spike after clearing the top layer of a narrowing congestive period formed after its 30 percent rise in mid-March. The pair appears to be in the last stages of completing a short-term continuation pattern known as a Pennant. If the break is met with follow-through, the ascent could theoretically be proportional to the one that brought USD/MXN to the digestive interim.

USD/MXN - Daily Chart

Chart showing USD/MXN

USD/MXN chart created using TradingView

This could lead the USD/MXN exchange rate to test as high as 30.8700, and the monthly chart supports the notion of an underlying bullish bias. Looking at a wider timeframe shows that the daily chart is a reflection of a multi-year continuation pattern that strongly resembles a Pennant. In this view, the breakout has already occurred, but a resurgent bullish drive – with accommodating fundamentals – could reinforce the pair’s ascent.

USD/MXN - Monthly Chart

Chart showing USD/MXN

USD/MXN chart created using TradingView

Top Trading Lessons
Top Trading Lessons
Recommended by Dimitri Zabelin
Top Trading Lessons
Get My Guide

To get more updates on USD/MXN and what fundamental forces are pushing the pair higher, be sure to follow me on Twitter @ZabelinDimitri.

US Dollar Outlook vs South African Rand

USD/ZAR is testing new highs as it flirts with puncturing the lower tier of the 19.0340-19.3453 resistance range. While it may not re-mount the former uptrend (gold channel), breaking above the upper layer with follow-through could reinforce bullish sentiment and push the pair higher. Conversely if it retreats, USD/ZAR may retest support at 17.8289.

USD/ZAR – Daily Chart

Chart showing USD/ZAR

USD/ZAR chart created using TradingView

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Dimitri Zabelin
Improve your trading with IG Client Sentiment Data
Get My Guide

US DOLLAR TRADING RESOURCES:

--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.