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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