Image Source: Pixabay
 

Always when we are looking for any kind of a trade set-up it's important to discover the main trend. The main and strong trends are impulsive. It's a five wave move which can give us an opportunity to join the downtrend on pullbacks as shown on this chart.

With that in mind, I am looking at USDMXN where the current downtrend appears to be very clear and impulsive, so there can be a chance to join the weakness here with potential shorts as recent recovery looks to be in three waves that completed wave 4. That said, we will discover potential short opportunities on this pair for members since the pair shows room for new lows.

More By This Author:

Goldman Sachs With Bullish Triangle Pattern
Dash Is Looking For The Final Leg Down
USDCAD Can Be Finishing An Impulse