usd/mxn

Here is a pair I rarely trade and its one of the few pairs with some movement lately, the markets over all are not in a good mood and of course it is also holiday time for some. We trade what we see and know to wait for good setups and not force trades.

Without further fan fare lets get stuck in and look at the ten mile high view on the weekly chart.

I drew a black line at a steep angle upwards, and no, Doc has not lost his mind and using trend lines or other voodoo or witch craft. That is for others who believe in a moving indicator rather than focusing on price which is what causes their magick to move in the first place. Anyways, I digress.

I also drew in an grey box to help show you the origin. Let it not be said I never state the obvious, but unless you are shown this, it could well evade your logical thought process. We hit the origin and price is now winding upward, but it is early days on this time frame.

Weekly Chart.

Daily chart.

The left most black line shows the nice move up clearly showing pro bulls in full control and on a mission for profit. Take note of the steepness of the line and compare it to the right most black line, price clearly had little interest in lower price.....think..bears are not interested and so we drift down until we hit the bullish origin and you can judge the reaction for yourself and who is in control. Getting the principle across is more important than the entries for the moment.

4hr chart.


I spy with my little eye, a resistance area hit today and an ideal place for profit taking and positioning. The second last candle is interesting, the profit taking appears to have been bought into and could be a sign of long orders.....but of course we must wait to see if this is so. It is end of day and end of week and a pull back on Sunday evening for those living in EU/US is likely and London will show us the way on Monday. Would be nice to see a decent move given the quiet time of late......hmm I wonder is it a holiday in London next Monday?

1hr chart.


This chart is here just to show a closer view of price action. The green line is the resistance area and the x candle is target and the certain sell off. Do you see the strong buy back on the arrowed candle?

Price was held up for a few hours and we need to keep in mind the traders intentions and if we get hints on what position is favored. Any pull back has room to allow price unwind down and I can see two clear areas where buyers came in before.

Other things to look out for, more bearish activity in Oil, Gold may be settling into a range and GBP/JPY has reached the top of an old decision from 2008 with very tight choppy range play. That will need resolving and there are good short term targets on either side of price if we get a clean break/pull back and continuation.