By Anton Eljwizat – The sustained upward movement of the USD/MXN pair doesn’t seem to be receiving much resistance lately. As I will demonstrate below, the price of USD/MXN may very well be heading for a correction, and it might have the potential of reaching towards 12.8500 in the coming days. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• The technical indicators that are used are the MACD, Relative Strength Index (RSI), and Slow Stochastic.
• Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 2: The Slow Stochastic indicates a bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 3: The MACD signals a bearish course for the pair is imminent, as the MACD oscillator is set to go reverse course anytime soon.
USD/MXN 4-Hour Chart
Forex Market Analysis provided by Forex Yard.
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