US DOLLAR MEXICAN PESO
The long term outlook on the monthly timeframes shows a very strong US Dollar against the Mexican Peso (MXN). The Mexican Peso has strongly recovered against the Dollar since May 2020, this analysis is similar to the weakness of the Dollar against the South African Rand. The price levels have eventually returned to the demand zone at 17-18 price handle.
Naturally we adopt smart money approach in our analysis. The institutional order flow show that there is a change of character on the Daily timeframe. After the change in character we expect a minor correction to pick buy orders sitting at the 17.9-17.8 levels before resuming the bullish momentum targeting the 20 price handles with potential to go even higher to mitigate the fresh supply sitting at the 23 price handle.
Using supply and demand approach, we have a bullish bias with our entries placed at the 17.8-17.9 levels. We are targeting the 19-22 price handles for extreme swing traders.