The USD/MXN is trading near the 19.78000 level as of this writing. Volumes in Forex, including the USD/MXN, are likely going to diminish rapidly as the Christmas holiday approaches and financial houses start to disappear from the trading landscape. Since the 6th of December, the USD/MXN has essentially traded within a range of 19.53000 to 19.90000 with some momentary outliers.
The development of a consolidated range in the USD/MXN before heading into the holiday season may attract some speculators who want to test the currency pair with quick-hitting wagers. Traders in the USD/MXN however should be aware the potential for volatility abounds if a large unexpected trade creates an unbalanced market.
Yesterday’s Highs in the USD/MXN Tested Resistance Again
Highs in the USD/MXN did come within sight of the 19.90000 mark but were not able to push above. Resistance at this value has proven stiff. On the 12th of December, the USD/MXN briefly climbed to 19.91580 vicinities but was pushed back and a low of nearly 19.51300 was seen the next day. However, some speculators may look at the current price of USD/MXN and believe the 19.90000 level is a target, but because of holiday trading volumes, this may prove tough to accomplish.
- Short-term resistance technically in the USD/MXN may be considered near the 19.83000 to 19.84000 levels; perhaps these targets can be used by speculators looking for fast take profit wagers.
- Support for the USD/MXN short-term may be near the 19.74000 to 19.73000 mark. Short-term speculative positions looking for a downside may want to use these ratios as a target with bearish intentions.
Consolidation in the USD/MXN has Grown Strong the Past Two Weeks
The USD/MXN certainly was testing lower values in early December. Even though the U.S Federal Reserve confirmed a less aggressive interest rate policy stance the USD/MXN has risen in value. This outcome may have something to do with Crude Oil prices languishing near long-term lows.
Traders looking for a big selloff in the USD/MXN may be over-ambitious. The current consolidated mode may lose its grip in the coming days, but a strong reversal of lower penetrating support which has been displayed the past two weeks would be a surprise in the near term. Taking advantage of the consolidation with nearby targets may be the best way to wager in the USD/MXN short-term.
USD/MXN Short-Term Outlook:
Current Resistance: 19.83000
Current Support: 19.71800
High Target: 19.92300
Low Target: 19.66700
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