MXNUSD rallies, gaining 179 pips (4.28%) within a single day
Mexican Peso/US Dollar (MXNUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MXNUSD finished Thursday at 0.04358 surging 179 pips (4.28%). This is the biggest single-day gain in over six years. The last time we've seen such an unusually strong single-day gain on February 4th, MXNUSD gained 0.41% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 0.04193, MXN/USD confirmed its breakout through the previous session high after trading up to 166 pips above it intraday.
Daily Candlestick Chart (MXNUSD as at Mar 26, 2020):
Thursday's trading range has been 235 pips (5.62%), that's slightly above the last trading month's daily average range of 192 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MXNUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.04351 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for MXN/USD. Out of 108 times, MXNUSD closed lower 59.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.48% with an average market move of -0.24%.