MXNUSD dominated by bulls lifting the market higher throughout the day
Mexican Peso/US Dollar (MXNUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MXNUSD ended Wednesday at 0.04774 gaining 48 pips (1.02%). Today's close at 0.04774 marks the highest recorded closing price since March 10th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 0.04771, the currency confirmed its breakout through the previous session high after trading up to 9 pips above it intraday.
Daily Candlestick Chart (MXNUSD as at Sep 16, 2020):
Wednesday's trading range has been 59 pips (1.25%), that's slightly above the last trading month's daily average range of 55 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MXNUSD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After having been unable to move lower than 0.04724 in the prior session, the market found buyers again around the same price level today at 0.04721. The last time this happened on September 11th, MXNUSD gained 0.94% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.04620 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for MXN/USD. Out of 18 times, MXNUSD closed lower 55.56% 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 61.11% with an average market move of -0.65%.