ONLINE FOREX BROKER
2020-05-21 • Updated
On the H4 chart of the USD/MXN, the USD lost its value to drop below the Moving Averages. It trades slightly above the tactical support of 23.07 and appears to be going in consolidation at that level.
The picture with the USD/ZAR is almost identical: the price drops below the Moving Averages, which are grouped now above the resistance of 18.35 and configured in descending order, and is approaching the local support.
The question is: what happens next? Technically, the price will likely bounce upwards from the support level with which it is flirting now for both currencies. The Awesome Oscillator supports that reasoning because it is bottoming out at a pretty low level compared to the previous drops. That hints that further decline is more unlikely than not.
Therefore, prepare to buy while the USD is hesitating to come back at the MXN and ZAR with another bullish onslaught.
However, it is just a technical view; let’s check with the fundamentals
The Mexican peso and the South African rand just have two very similar movement pattern in relation to the US dollar, but they are not the only currencies from the developed world which see the local devaluing of the USD. If you look at the Brazilian real and the Turkish lira, these would also show are a local drop of the greenback, although overshadowed by a larger (and an ever-continuing) upward trajectory. That means that all these currencies share similar characteristics and are affected by similar factors in relation to the USD.
The main factor is the strength of the USD as the prime emblem and functional element of the strongest economy in the world - hence the inherent decline in the relative value of the MXN and ZAR, followed by the TRY and BRL against the USD. The fact that the Mexican peso and the South African rand show similarity in how they move against the greenback merely means that Mexico and South Africa have similar economic strength against the US economy while, for example, Turkey and Brazil have less to say against the USD because their economies are not as robust.
Second, these currencies, being exotic and hence enjoying a significantly lower demand are much less exposed to the results of the economic actions of their own governments as they are to those of the United States. That is, the behavior of the USD/MXN and USD/ZAR is almost entirely dictated by the state of the USD alone, making the MXN and ZAR in their own sense quite irrelevant to what we see on the chart. In a nutshell, with the exotic currencies, the USD dictates almost 90% of what is happening.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
