USD/MXN Cross May Go Bearish

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.

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