ExoticTrading is a series of analyzes, which is created in collaboration with the broker InterTrader and is published on Comparic every Monday, Wednesday and Friday. The theme as the name suggests are so called- exotic currency pairs.
According to our latest analysis, after the strong growth impulse market in accordance with the principle of changing polarity decided to retest level around 9.5919 coinciding with 38.2% Fibonacci correction (this time as a support). For several days the market moves in consolidation and in which direction it will strike could determine the direction of movement in the near future. Considering that for a long time we have bullish trend and the market has recently established new highs more likely seems to breakout up and continue growth, although the last days also indicate a significant power of supply, which to take control over the market would have to overcome the trend line.
Last week USDNOK defeated very important support @ 8.0130. If in the near future the market will not negate that breakout, then we can expect that the downward trend would continue in the coming weeks and even months.
At the monthly chart we see that the potential declines could even reach the levels around 7.5100 or even 7.3000
For a long time the market moves in a fairly large consolidation zone between the support of 2.7492 – 2.7883 and resistance 3.0670. After a decline from the beginning of the year, the market came in around the area of support and uptrend line. Since then, the trend line is a key support and have not even once been crossed. We are now in the region of the upper limit of consolidation and even if the market rejects the current zone, the resolution of the situation and breaking in any direction should take place before the end of the year.
According to our latest projection currency pair USDMXN after a strong growth impulse breaking 19.1310 resistance, returned this week to around the level of 38.2% Fibonacci correction of the last growth impulse. We see a bullish candle pin-bar forming which might be a signal for the continuation of growth in the coming weeks.
By investing on a pair of exotic use low spreads at broker InterTrader that at the time of the creation of the analysis for each instrument in turn were 12.7, 2.7, 5.8 and 3.5 pips.
On the daily chart we can see a strong bullish movement, which yesterday rejected level of 19.1310 although it is worth mentioning that the declines could even reach the level of around 50% Fibonacci momentum including testing support @18.9550.