Despite the today’s rallies of USDMXN might have been exhausted at the highs of 19.5456 and began dropping from then, this should not be deemed as a bearish pressure.
The current prices spike above DMAs after taking strong support at 18.4529 with bullish crossover.
Convergence to the price rallies as RSI forms higher highs, while stochastic curves have reached overbought territory but no traces of selling momentum yet.
On monthly charts of USDMXN, despite the occurrences of shooting star candle patterns at 18.1178 and at 17.5900 levels followed by a bullish engulfing pattern, you could probably guess the intensity in the robust uptrend.
The current prices on this timeframe have been consistently above EMAs.
Massive volumes are in conformity to the short-term rallies and major uptrend. We’ve seen a volume confirmation as well with these price spikes.
RSI and Stochastic, on the other hand, have halted in the overbought zone from the last couple of months as they converge to the prevailing price upswings.
Well, overall the pair at current juncture in a mood of continuation, prevailing rallies in short run may extend but use dips when bears get activated so as to make trade more attractive.
Hence, stay long in near month futures contracts as the pair most likely to retest all-time highs of 19.9229 levels sooner or later.
