The USD/MXN had a mixed trading the past handful of days. A high of nearly 17.50000 was touched last Thursday; this after the USD/MXN had traded around a low of 17.0300 early last Monday. However, the USD/MXN began to reverse lower after touching Thursday’s highs and the currency pair went into the weekend close to the 17.15850 mark. The USD/MXN is presently traversing the 17.24600 vicinity with typical fluctuations being demonstrated.
Support levels may have factored into the USD/MXN significantly last week if financial institutions continue to believe that current equilibrium in the currency pair is fair. The USD/MXN has had trouble penetrating the 17.10000 ratio and sustaining values below since the third week of September. The Mexican Peso has been a consistently strong currency against the USD since April of 2020 and it remains within sight of long-term lows. However, a challenge to the lowest depths around 16.60000 touched in July has remained elusive.
USD/MXN Bearish Traders may need a Change of Perspective
The USD remains under a rather negative outlook via many financial institutions and it has been selling off rather consistently against many major currencies. The USD/MXN did hit a high of nearly 18.49000 in early October, but since hitting a low next to 17.0600 on the 21st of November; the Forex pair has seen rather consistent choppy results.
Traders may feel the USD/MXN has additional room to traverse lower, but until the 17.10000 level can be challenged and values can sustain below this mark, selling positions may not be ignited in mass. The U.S Federal Reserve is due to release its FOMC Statement on the 13th of December, but between then and now speculative conditions in the USD/MXN may flourish and continue to exhibit brief spurts of volatility for day traders trying to capture technical trends.
U.S Jobs Data Later this Week will affect the USD/MXN
Speculators may want to be rather conservative regarding their approach to the USD/MXN in the near-term as it reacts to behavioral sentiment impetus via global markets. The USD has been weaker against many major currencies, but financial institutions may believe the USD/MXN needs another dose of energy to be taken lower. Perhaps this can occur if U.S Treasury yields continue to erode.
- The short-term for the USD/MXN is likely to remain choppy today.
- Speculators will certainly keep their eyes on the U.S jobs numbers, which will be published on Friday and will cause quick price velocity.
- Support and resistance levels near-term may continue to prove stubborn and reversals may factor into the next two days of trading for the USD/MXN. Meaning quick hitting trading tactics could prove useful.
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