News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
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
More View more
Real Time News
  • (AUD Weekly Tech) Australian Dollar May Wilt, Downtrends Resume: AUD/USD, AUD/JPY, AUD/NZD, AUD/CAD https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/09/19/Australian-Dollar-May-Wilt-Downtrends-Resume-AUDUSD-AUDJPY-AUDNZD-AUDCAD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/DedoOKJMXh
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/GQB0ic9Ahe
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/lx3cMSpZNc
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfUNW0y https://t.co/n4NXZUovb0
  • Scoping out next week for trading the market, there are a range of high profile influences including September PMIs, Evergrande and a range of central bank decisions. Top listing on my docket is the #FOMC with my scenarios below. Full analysis: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/18/SP-500-and-Dollar-on-the-Hook-for-Breaks-with-Evergrande-Fed-and-September-Trade-Ahead.html https://t.co/ZdoMJS9fp5
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
USD/MXN – US Dollar Pressing Support, Big Breakout vs Mexican Peso

USD/MXN – US Dollar Pressing Support, Big Breakout vs Mexican Peso

Paul Robinson, Strategist

USD/MXN Highlights:

  • USD/MXN big-picture triangle breaking to the downside
  • Could be a fake-out but running with what is immediately presented
  • Breakout in volatility could be a good omen for FX volatility in general

Less than two weeks ago I was discussing the backdrop for a volatility breakout in the US Dollar versus the Mexican Peso, and as of last week USD/MXN is starting to break down out of the macro-wedge dating back to the beginning of 2017.

The break that started last week has only been minor thus far, with price just starting to poke through the underside trend-line of the pattern and probing the October low. This slight breach isn’t yet making for a compelling breakout, and with us moving closer to the end of the year we may not see momentum come in until the calendar flips.

There is still a good chance that the initial breakout will be a false one, as these types of patterns (symmetrical triangles) are known to have a ‘fake-break’ or two around the apex before finding a sustainable direction.

Even with that being the case, it is a good idea to take what the market presents immediately in front of us when it comes to these things, and be ready for an alternate scenario to play out should the cards start to turn that way. For now, some separation below 19 will help strengthen the bear case.

An inability to continue to sustain lower will begin to increase the likelihood we see a reversal higher. In that case, the false breakdown and rally would be in-line with the longer-term trend, but for confirmation to come on the top-side a breakout above 19.94 with force is desired.

Dollar/FX volatility has been on a major decline these past few years, leading the US Dollar Index towards finishing 2019 with the smallest annual trading range since 1976. The USD/MXN chart highlights this crunch in volatility, and it starting to jostle itself free looks like a major silver lining for FX volatility as we head into 2020.

USD/MXN Weekly Chart (regardless of how it unfolds, looking for volatility to pick up)

USD/MXN weekly chart, regardless of how it unfold, looking for volatility to pick up

USD/MXN Chart by TradingView

USD/MXN Daily Chart (needs to weaken a bit more and get some clearance)

USD/MXN daily chart

USD/MXN Chart by TradingView

***Updates will be provided on the above thoughts and others in the trading/technical outlook webinars held at 1030 GMT on Tuesday and Friday. If you are looking for ideas and feedback on how to improve your overall approach to trading, join me on Thursday each week for the Becoming a Better Trader webinar series.

Resources for Forex & CFD Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES