USDMXN shorts on a weekly pivot rejection

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13 August 2021 | Updated: 13 August 2021

Key resistance: 20.00
Key Support: 19.88 – 19.80

The USDMXN has been trading sideways in a very choppy range (on the daily and higher TFs) for about 6 weeks but since Tuesday, we have seen a very structured bearish move (-1.52% from high to low).
I’ve been hunting these shorts since yesterday on a retest of the 20.00 level. This level, historically, has been key when price trades around it, and the breakout that we saw on Wednesday was extremely strong. My rationale here is to short on a pullback to this exact level.

After the last hourly candle closed very bearish above the daily lows and having rejected the weekly pivot and the previous broken level (20.00) I decided to put a sell stop below the daily lows to get triggered on further bearishness since the highest probability trade in this market today is to the downside. More so with the US Dollar showing weakness in early European trade.

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