The USD/MXN continues to demonstrate an ability to diverge in a crowed Forex arena, which has seen the USD gather strong momentum against most other currencies.
The USD/MXN is trading below the 20.00000 level as of this writing. The ability to sustain values below the 20.00000 is noteworthy, because the USD/MXN remains intriguingly bearish compared to other major currency pairs with the USD serving as the dominant feature. Yes, the USD/MXN does trade higher too, but the ability of the Mexican Peso to remain relatively strong is highly encouraging.
There is no doubt an enormous demand for Mexico’s crude oil keeps a solid foundation for the USD/MXN. The past five days of trading have also delivered a dynamic technical perspective in which the USD/MXN has traded between 19.92000 and 20.20000 rather impressively. Speculators cannot be faulted for continuing to believe this range may be an opportunity to wager.
USD/MXN Mirrors Results of Forex even while it marches to its own Drummer
Yesterday’s price action reflected the broad Forex market as the USD/MXN reached short term highs early in the day, and then displayed a strong amount of selling action. This is written to highlight while the Mexican Peso has not lost a vast amount of value to the USD, that it still reflects short term gyrations technically on many occasions. It is the range of the USD/MXN and its exhibited ability to provide bearish momentum consistently which should be intriguing to traders.
Traders Should Monitor the USD/MXN closely and compare it to other Forex Pairs
If the USD/MXN is able to stay below the 20.00000 for a sustainable amount of time this would be extremely interesting. However, broad market conditions do remain nervous and behavioral sentiment is likely to be uneasy in the near term. Speculators may find an opportunity to pick out existing technical support and resistance levels and wager with quick hitting trades.
- If support near the 19.95000 mark proves strong, speculators cannot be blamed for thinking the 20.00000 level will again be seen.
- Dynamic risk-taking tactics such as take profit orders, which are not overly ambitious while looking for short term reversals higher as wagers may prove worthwhile.
The ability of the USD/MXN to trade lower but also maintain a strong footing for the Mexican Peso is noteworthy. The ability of the USD/MXN to display a relatively strong support level of 19.91000 could lure speculative buying positions for cautious traders who seek reversals higher. More aggressive traders may be willing to seek buying positions near current price action of 19.97000 to 19.98000 to look for moves that use the 20.01800 realm as a magnet for wagers.
USD/MXN Short Term Outlook:
Current Resistance: 20.01800
Current Support: 19.94900
High Target: 20.1190
Low Target: 19.86200
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