While perusing the latest Commitment of Traders Report, published on April 1st, we noticed that among the punters, like us, there was a 95% bullish reading i.e. 95% long open interest says players are positioned for the peso to move higher against the US dollar. This seems a fairly concentrated one-way bet. Often one-way bets lead to corrections, or intermediate-term trend changes.

A look at the point and figure chart of the Mexican peso, with wave counts attached, suggests maybe its correction time, as the USDMXN has traced out a clear 5-wave pattern down. It could be time for a correction. A break above 10540 may confirm such a move…

Jack Crooks

Black Swan Capital LLC

http://www.blackswantrading.com/

Black Swan Capital's Currency Snapshot is strictly an informational publication and does not provide individual, customized investment advice. The money you allocate to futures or forex should be strictly the money you can afford to risk. Detailed disclaimer can be found at http://www.blackswantrading.com/disclaimer.html

Currency Currents is available for only $49 per year. Just visit the sign-up page on our website to subscribe: http://www.blackswantrading.com/Currency_Currents.html

Black Swan Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.