By Anton Eljwizat – The USD/MXN cross has been experiencing much bullish behavior in yesterday trading session. However, there is much technical data that supports a bearish move for today. As I demonstrate below, that the USD/MXN may very well be heading for a reversal, and it might have the potential of reaching towards 12.12 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 used are the Slow Stochastic, Relative Strength Index (RSI) and Williams Percent Range.
• Point 1: The Slow Stochastic indicates a bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 2: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 3: The Williams Percent Range signals further bearishness for the pair, which in turn indicates further downward pressure to occur anytime soon.
USD/MXN 4-Hour Chart
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