FxWirePro: USD/MXN flies after “Dragonfly Doji’ formation cushioned at 7DMA, price, OBV and OI move in sync with major uptrend

After dragonfly doji, the current prices spike after testing support at 7DMA, rallies well supported with bullish DMA crossover and momentum confirmation by leading oscillator.

No traces of bearish indications, uptrend constantly well above 7&21EMAs backed by OBV (on balancing volume) and momentum indicators.

On daily charts of USDMXN, from last weekend, the bull trend seems to have taken off to the next higher levels ever since the bulls have managed to break out above the tight range between 20.8725 and 20.1265 levels.

Although the bears are hovering at 7DMAs but upswings are well supported by 21.0482 levels (i.e. 7DMA) or next immediate strong support is seen at 20.7301 levels.

Thereafter, upon the break above 20.8725 levels decisively and its sustenance should bring in more rallies, we foresee more rallies to establish all-time highs.

On a broader perspective, the current uptrend has constantly been spiking above 7&21EMAs with healthy momentum and volumes formation.

RSI and Stochastic on the other hand (on both dailies and monthly terms) signal healthy bullish momentum even in overbought territory as they converge to these price upswings.

While MACD signals this bullish trend likely to prevail further.

Although average volumes are in conformity to the long-term rallies, we’ve seen a volume as well as open interest confirmation with these price spikes daily terms.

Hence, for both short and medium term investors longs likely remain intact. Subsequently, on intraday speculative grounds the best way to approach this pair is to deploy below advocated binary option strategy.

Trade tips: We reckon it wise to capture deceptive dips and stay long, as a result of above technical reasoning we see opportunity in binary calls that seem more conducive for intraday speculators.

This strategy is best suitable for leveraging effects if you are the conviction on upside targets.