The USD/MXN has experienced another decline in value the past few hours and the currency pair is traversing near important long-term lows.
The rapid decline in value of the USD/MXN quickened this morning and a low of nearly 18.60500 is currently being challenged. Due to the rapid speed of price action early today, readers are urged to check on the market price of the USD/MXN to compare it to this article to add perspective to short-term developments.
This morning’s low in the USD/MXN and continuation of bearish momentum, which has intensified since last week now has the currency pair trading within price realms not touched since February 2020. The reason some technical and fundamental speculators may find this curious is because this value can be interpreted as a pre-coronavirus price before global economic realities changed.
From July of 2018 to February 0f 2020 the Current Price of the USD/MXN was a Support Level
Prior to the onset of coronavirus fears abruptly hitting the world of Forex and the USD/MXN the current values of nearly 18.50000 to 18.70000 largely acted as durable support area. And it wasn’t just in early 2020 this support level was being used technically; it appears looking at a long term chart that from July of 2018 to February of 2020 this price range held back selling momentum rather sternly.
- Traders should pay close attention to the 18.60000 level, if this ratio is broken lower sellers may want to narrow their targets below and seek quick take profit orders to cash out winning positions.
- The USD/MXN is now clearly within sight of important long-term lows and they can certainly prove vulnerable too, but traders may want to include the notion reactionary reversals higher may develop in the near-term.
Bearish Trend in the USD/MXN has Increased Speed and Needs Attention
Betting against a strong trend can be very dangerous and it is not advised for the USD/MXN in the short term. Certainly, the price of the currency pair can extend lower. The USD/MXN was trading near the 18.55000 mark in February of 2020. And briefly, in August of 2018, the USD/MXN was trading near the 18.40000 level.
These long-term lows are not barriers; the price can go lower in the USD/MXN. But until it does and values from April of 2018 are being tested near 18.10000, speculators may want to remain cautious and be wary of the potential for reversals higher as financial houses try to interpret the lower values now being tested.
USD/MXN Short-Term Outlook:
Current Resistance: 18.6910
Current Support: 18.58000
High Target: 18.77000
Low Target: 18.52000
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