USDMXN plunges, losing 986 pips (-4.12%) within a single day
US Dollar/Mexican Peso (USDMXN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, USDMXN finished Thursday at 22.945 tanking 986 pips (-4.12%). This is the biggest single-day loss ever recorded for the forex pair. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 23.849, the market confirmed its breakout through the prior session low after trading up to 908 pips below it intraday.
Daily Candlestick Chart (USDMXN as at Mar 26, 2020):
Thursday's trading range has been 1309 pips (5.47%), that's above the last trading month's daily average range of 947 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for USDMXN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 22.981 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend 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 Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for USD/MXN. Out of 108 times, USDMXN closed higher 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 long side has been after 10 trading days, showing a win rate of 58.33% with an average market move of 0.36%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDNOK tanking -3.12% and USDCZK closing -2.26% lower. Read more