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RE: TIB: Today I Bought (and Sold) - An Investors Journal #280 - US Interest Rates, Poland, Mexico, Singapore, Oil, Philippines, South Korea, Japan Govt Bonds
So is the mexican peso a buy in your opinion? Also nice trade set up on ETH on the reversal daily hammer candle.
Not my place to give advice. I present a weekly chart of USDMXN. Price accelerated away from the lower uptrend line for the 2017 high and then retraced back to a new uptrend line. That line is exactly the same slope as the lower one. Price has made two higher highs and two lower lows.
That tells me to be super cautious of doing anything other than being long USDMXN. What can change this? Changing position from the Federal Reserve on rates - slowing down will weaken the US Dollar. Rapid move up in oil price - strengthen the peso
Note: The question needs to be more precise. You asked: "is the mexican peso a buy?" I answered: I would not buy the Mexican Peso and sell the US Dollar. Same applies to your ETH statement. Assuming ETHUSD: The problem I have with the hammer bar was the bar after was also a long tailed bar facing the other way.
The market is undecided in a volatile way. Now when you look at ETHBTC, the bar after was less volatile (but also undecided). The challenge in the setup is it is a counter trend trade - it might work but it will go horribly wrong if it does not. Seeking confirmation of the reversal would be safer.
Thanks for great insight.