Updated 06:33 WAT · 26 Oct
USD/MXN Analysis
18.6948+0.25%Slightly Bullish
Confidence70%
Momentum20
- Entry
- 18.6948
- Stop Loss
- 17.8192
- Take Profit
- 19.0394
R:R 1:0.4 - ATR: 0.658%
Trending
Clear directional trend - trend-following strategies favored
ADX
49
Strong
RSI
75
Volume
1.0x
Normal
Timeframe Analysis
1D+3.2
RSI 75
ADX 49
BB 90%
1H-0.1
RSI 49
ADX 20
BB 47%
15m+0.8
RSI 50
ADX 5
BB 34%
5m-0.9
RSI 47
ADX 10
BB 43%
1m-0.9
RSI 51
ADX 14
BB 60%
Signal Rationale
- →ADX 49 on 1D - robust trend in Trending regime
- →Market regime: Trending - Clear directional trend - trend-following strategies favored
About USD/MXN
USD/MXN is the most liquid emerging-market currency pair. The Mexican Peso benefits from deep trade ties with the US (USMCA agreement), substantial remittance flows, and a relatively high interest rate that attracts carry-trade capital. Banxico (Mexico's central bank) is known for aggressive, sometimes surprising policy moves. The pair is most active during New York hours when both Mexican and US markets are open.
- Spread
- 5–30 pip
- Volatility
- High
- Best Session
- New York (12:00–20:00 GMT)
- Key Drivers
- Banxico rate decisions, US-Mexico trade relations, US economic data (particularly employment), remittance flow data, Mexican political developments, oil prices
Trading Tips
- →Banxico meetings frequently surprise markets - the bank has historically been willing to hike or cut more aggressively than consensus expects.
- →US non-farm payrolls affect MXN through the trade channel: strong US employment → more remittances and exports → stronger MXN.
- →Liquidity is the best among exotic pairs - this is the one exotic where intraday trading can be viable with appropriate spread management.