By Anton Eljwizat – The current bullish trend for USD/MXN may come to an end anytime soon, and a bearish correction could be in the making. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• Below is the 4-hour chart of the USD/MXN currency pair.
• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and Williams Percent Range.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Slow Stochastic indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 4: The Williams Percent Range has peaked near at the 0 marker, which means that there may actually be a strong level of downward pressure.
USD/MXN 4-Hour Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
