The USD/MXN is hovering around the 18.00000 ratio as of this writing. The past week of trading was nearly a repeat of the previous version, as the USD/MXN would challenge the 18.00000 support level and sometimes go slightly below the fixture, and then suddenly reverse higher. This past week’s results were slightly more energetic than the previous week’s however, this as lower support and higher apex levels were challenged. The more vibrant price range of the USD/MXN may be happening as financial institutions get ready for Wednesday’s U.S Federal Reserve pronouncements.
Speculative Technical Short-Short Term Bullish Traders may like the USD/MXN
The USD/MXN is open to a couple of contradictory perceptions by traders. The price range of 17.98000 to 18.18000 or thereabouts may looking tempting to try and find quick hitting trading wagers. The range has proven rather tight with the occasional outlier being demonstrated in the past week, in fact the past two weeks. Resistance above has been rather durable, but the ability of the USD/MXN to extend its highs slightly the past week may have been dangerous for bearish traders who weren’t careful with stop loss protection as they sought reversals lower.
Buyers of the USD/MXN may have enjoyed the technical reversals higher, but in order to take advantage of this take profit orders have likely been needed to get out of a position before the USD/MXN reversed again lower. Forex markets will be very light today internationally because of the May Day holiday being celebrated. However, U.S traders will be working and USD/MXN speculators need to monitor their positions carefully for potential spikes because of thin trading conditions.
ISM Manufacturing PMI data from the U.S Today and Federal Reserve Rhetoric to Come
- Quiet trading conditions today could be disrupted by U.S ISM Manufacturing PMI results today if there is a surprise result.
- An interest rate hike from the U.S Federal Reserve is assumed for Wednesday. But financial institutions and traders will be listening to the rhetoric regarding what will happen in June from the U.S central bank. The FOMC Statement will rattle the USD/MXN.
Consolidated trading in the USD/MXN may have produced good results for short-term technical traders. However because of the approaching U.S Federal Reserve’s FOMC Statement on the 3rd of May, traders should expect volatility to erupt for the Forex pair and the consolidation to break. The trend lower in the USD/MXN has been running into stiff resistance around the 18.00000 level for a while now, and the question bearish speculators are considering is if and when another leg down will develop?
USD/MXN Short Term Outlook:
Current Resistance: 18.04100
Current Support: 17.98400
High Target: 18.11300
Low Target: 17.94200
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