LONG TERM PERSPECTIVE | USDMXN

We recently closed our last counter-trend trade on this pair with 1,975pips (see link below for reference purposes) and it appears that the rally still continues. Two trading plans illustrated below;

Tendency: Uptrend following a temporary Downtrend ( Bullish)
Structure: Pennant | Flag
Observation: i. Price action caught in converging trend lines during a consolidation period lasting since January 2017.
ii. The overall expectation is Bullish considering the flagpole prior to consolidation moves.
iii. Price slicing through Moving Averages to the downside on lower time frames indicating a temporary down rally.
iv. Anticipating a breakout.

Trading plan I: SELL with TP1 and TP2 @ 13,728pips and SL @ 20.0000/21.00000 zone.
Risk/Reward: 1/1.3
Potential Duration: 5 to 10 days

Trading plan II: BUY now or at DEMAND zone.
Risk/Reward: 1/2.5
Potential Duration: NA

** Please note that Stop Loss is subject to individual risk appetite per trade and account size.

Watch this space for updates on lower time frames as price action is been monitored.


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