USDMXN - A lesson in the Marabuzo line

Lower highs dominated the 2nd half of 2012 in USDMXN and prices are now trading to the lowest levels since Sept 2011.
However it is the latest down-leg from the end of December that I want to draw attention to. As you can see from the chart, the decline has been like steps leading to these significant lows. Each sharp fall beginning with Dec 31st - where incidentally a short-term sell signal was generated - created a Marabuzo line.
The most important being the one formed on Jan 2nd. This point, 12.8100, held the upside on the subsequent 5 days of trading (on a closing basis).
While the Mexican Peso is probably not at the forefront of most people's trading these Marabuzo line are an excellent aid to trading in all major markets. Take a look for yourself.

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Tags: #Marabuzo, #usdmxn

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