Preparing for the publication of inflation data in Mexico
Technical Analysis Summary USD/MXN: Buy
| Indicator | Value | Signal |
| RSI | Buy | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Buy |
Chart Analysis
On the daily timeframe, USDMXN: D1 has exited the short-term downtrend. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if USDMXN: D1 rises above its most recent high of 19.86. This level can be used as an entry point. Initial risk cap possible below Parabolic signal, lower Bollinger band, low since Feb 2020 and latest down fractal: 18.96. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (18.96) without activating the order (19.86), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of -
Investors expect inflation to slow down in Mexico. Will USDMXN quotes continue to rise?
The Mexico Consumer Price Index fell to +8.41% y/y in October from a 20-year high of +8.7% y/y in September and August. In November inflation is expected to slow down to +7.93% y/y. This may cause an easing of the monetary policy of the Bank of Mexico at the next meeting on December 15th. Its current rate is 10% and is well above inflation. It should be noted that earlier it was planned to further increase the Bank of Mexico rate to 10.5%. Theoretically, forecasts can be revised depending on economic data.