MXNUSD pushes through key technical resistance level
Mexican Peso/US Dollar (MXNUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, MXNUSD ended the week 1.22% higher at 0.05393 after gaining 16 pips (0.3%) today on low volume. Today's close at 0.05393 marks the highest recorded closing price since August 8, 2018. Closing above Thursday's high at 0.05382, the FX pair confirmed its breakout through the previous session high after trading up to 13 pips above it intraday.
Daily Candlestick Chart (MXNUSD as at Feb 14, 2020):
Friday's trading range has been 25 pips (0.46%), that's far below the last trading month's daily average range of 41 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MXNUSD.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on December 12, 2019, MXNUSD gained 0.25% on the following trading day.
Buyers managed to take out the key technical resistance level at 0.05388 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for MXN/USD. Out of 30 times, MXNUSD closed higher 53.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.33% with an average market move of 0.03%.