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
Oil - US Crude
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
More View more
Real Time News
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/3slfUlBMvq
  • The Swiss Franc’s technical stance against the New Zealand Dollar and Japanese Yen has brightened, with the technical outlook in NZD/CHF and CHF/JPY primed to benefit CHF. Get your market update from @FxWestwater here:https://t.co/u4GY00QpgC https://t.co/WyAsQcl1Ra
  • 🇸🇬 Unemployment Rate Prel (Q2) Actual: 2.7% Previous: 2.9% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.25% Gold: 0.03% Oil - US Crude: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/bgDO7ntMjQ
  • The Citi Economic Surprise Index tracking the US just turned negative for the first time since June 2020 This means economists are now overestimating the health and vigor of the economy, opening the door to disappointment ahead This does note bode well for NFPs next week...
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.00% 🇨🇭CHF: -0.04% 🇪🇺EUR: -0.05% 🇦🇺AUD: -0.09% 🇨🇦CAD: -0.13% 🇳🇿NZD: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/yZQPhHsvEr
  • Heads Up:🇸🇬 Unemployment Rate Prel (Q2) due at 02:30 GMT (15min) Previous: 2.9% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Amazon Earnings Cast a Shadow on Nasdaq 100. APAC Stocks to Open Mixed https://www.dailyfx.com/forex/market_alert/2021/07/30/Amazon-Earnings-Cast-a-Shadow-on-Nasdaq-100-APAC-Stocks-to-Open-Mixed.html https://t.co/R5aoytGQvQ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.22%, while traders in Wall Street are at opposite extremes with 77.28%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/DdoKAC3hFV
  • Delta Variant accounts for 92% of new Covid cases in the US https://t.co/Ub43kJfk3L
USD/MXN Technical Outlook Hinges on Direction of Stock Markets

USD/MXN Technical Outlook Hinges on Direction of Stock Markets

Paul Robinson, Strategist

USD/MXN Highlights:

  • USD/MXN rally to continue on more de-risking
  • Big levels ahead to watch should the surge continue
  • Watch the stock market, eyes on the NDX

USD/MXN rally to continue on more de-risking

It took some time for USD/MXN to respond to weakness in equity markets, but this week it came to life as U.S. weakness spread across global markets. The spike higher has put it back in the game for higher prices, but there lies some sizable resistance ahead.

The resistance zone stretches from 22.83, a pullback low in March that has seen some touches since, and 23.27, a low in April that is in near alignment with the June high. Should we see USD/MXN continue to string it together into that zone watch how price action behaves and if equity markets are still weakening. A breakout through could really have USD/MXN off to the races towards the previous highs in the 25s...

USD/MXN Daily Chart (watch the zone around 23)

USD/MXN daily chart

USD/MXN Chart by TradingView

Turning to the equity markets, eyes are on the global picture of course, but if there is index I’m most focused on, it is the Nasdaq 100. It is dominated by the world’s largest, leading companies (FANMAG+ Tesla), and thus the leader for the U.S., which has been a leader globally. So goes the leaders goes the rest…

After breaking its parabolic trend the NDX has been on its backfoot. In the near-term it is still pointed lower, with a descending wedge coming into view. This could snap the correction or accelerate it; will be paying close attention to whether it breaks the upper or lower trend-line of the formation.

In the event of a breakdown, then it is likely we continue to see USD strength as de-risking continues. If, however, we see the top of the pattern break and stocks rise, then look for the USD to pull back, likely giving MXN a boost.

Nasdaq 100 4-hr Chart (descending wedge)

Nasdaq 100 4-hr chart

Resources for Forex 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