Mexican Peso—The Mexican Peso in the June contract is trading higher by 38 points at 4944 as prices are hovering right near a 3 month high continuing it’s bullish momentum. I am now recommending a bullish trade while placing the stop-loss under the March 8th low of 4575 as the risk is around $1,800 per contract plus slippage and commission as I do believe the U.S dollar has topped out in the short-term.
The volatility at the present time remains low as we continually grind higher on a weekly basis as prices are trading above its 20 and 100 day moving average telling you that the trend has turned to the upside. The next level of resistance stands at the January 21st high of 5033 and if that is broken this market could have significant room to run to the upside so play this higher as the trend is your friend especially in the currency markets.
Historically speaking the Peso remains depressed as this currency traded much higher 10 years ago from today’s price level as I will be looking at adding more contracts to the upside and if this trade turns into a winner I will plan on adding more contracts as adding to winning trades and exiting losers is the way to go over the course of time in my opinion
CHART STRUCTURE: IMPROVING
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