Exchange rate analysis USDMXN, GBPMXN, EURMXN using RSI and Stochastic Oscillator during the COVID-19 pandemic

Abstract

Financial markets were affected by the effects of the pandemic, the evolution of COVID-19 affected industrial and commercial behavior, therefore GDP and GNP were affected, but also the impact on the financial markets was imminent. In the case of exchange rates with the Mexican currency, they were very volatile since the beginning of the COVID-19 cases in Mexico, and other macroeconomic variables and determinants also affected the exchange rate prices. The use of indicators applied to financial markets serves to observe how to analyze the changes that come to present in the price of financial assets, is therefore that with the use of the Relative Strength Index by (Wilder, 1978) allows to observe whether the price of a financial asset is in overbought or oversold. The stochastic oscillator by (Lane,1984) allows to observe important areas of the price of the financial asset, with the use of slow and fast stochastic oscillators you can get a better analysis of the movements that the asset has had and the possible fate it may have. The use of these indicators allows to observe the behavior of the currency pairs USDMXN, GBPMXN and EURMXN, according to the events during the COVID-19 pandemic.