Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market
Sep 4 2019, 08:47 PM (BDT) |

Good afternoon!

ISM Manufacturing PMI, which was published yesterday, demonstrated the slowing down in the US economy in August. The index dropped below 50 and was released at 49.1. We recommend to pay attention to two factors: 

  • Employment decreased to 47.4. We remind you that this Friday we are waiting for NFP statistics. 

  • Inventories increased to 49.9. Thus it reflects that the economy may be worsening.

ISM non-manufacturing PMI is published on Thursday 05th September. 

Picture 1. ISM manufacturing PMI (Aug)

On Wednesday the most important news from the US is published at 6 p.m. GMT. This time the US Beige Book is published. 

The Mexican economy continues to slow down. Its National GDP is decreasing (for the second quarter GDP QoQ was at zero). Manufacturing PMI for August is plummeting too (released at 49 against 49.8 in the previous month). 

Today we are exploring USD/MXN as the main speculation for today. 

On the 1W TF, USD/MXN touched its resistance level at 20.00000. A Bearish Engulfing pattern is being formed – the price closed the gap from the previous week. The 200-EMA is rising slightly. 

Picture 2. USD/MXN 1W TF

On the 1D TF, the price broke the trend line down and started falling. Indicators reversed – the Parabolic SAR is moving down. The MACD line crossed the signal line down. The Williams %R left its overbought zone. 9-EMA reversed too. The target is 19.60200 (50% Fibonacci level). 

Picture 3. USD/MXN 1D TF

Olymp Trade is a reliable broker, a member of the Financial Commission of A category. This is proof of the high quality of our services and guarantees each trader deposit insurance, comprehensive support and prompt resolution of all issues.