USD/MXN - Strong Buying OpportunityWhats up traders, I hope you all had a good weekend.
With USD/MXN recently rallying straight of a downtrend, it was bound to have a correction. Here I have USD/MXN on the 1D chart. Price recently had a small downside correction after an up impulse.
Price recently showed a pullback after the up impulse and small upside since. I believe this is a very high probability upside move. We don't get such good quality trades often and I love the set up!
After the up impulse, price corrected to the Fibonacci retracement , 200 major moving average, and sideways support. When price hit the level mentioned, there has been multiple doji candles, and some very gentle bullish pressure. This very subtle shift from bears to bulls is absolutely perfect, and I am expecting a very strong up move from this area. This trade is a gem, and you don't get them this good often.
For those who trade indicators, I also accidentally found a compelling bullish Stochastic divergence with this analysis. Usually I would not post indicators on my charts, but due to how strong and compelling the bullish divergence is, it is worth noting for this analysis and can be found on the above chart.
I am expecting price to move to the upside, to the 3 wave target of 19.4000. My bias is up for this pair, however there are is 2 key trading scenarios that could play out for price to complete the desired move.
-Price retests the swing low (The 18.5000's level where price had it's previous correction low) before having the move to the upside target.
-Price rallies from current levels, straight to upside target (Due to the nature of this set up, this is surprisingly likely)
Bare in mind that this trade could retest lows before upside, so you must use this analysis as a guide but trade using your own.
I will be updating this analysis as the trade progresses.
