The USD/MXN is near the 16.94580 ratio as of this writing, which is near lows that have been tested much of the past week. However, the test of the current values in the USD/MXN has taken place as light holiday trading has occurred and this will continue in the coming days. Traders should not expect full market volumes to return to the USD/MXN on the 8th of January.
Yet while the USD/MXN remains within the lower elements of its one-month and six-month price charts, the trading results from last week could prove attractive to speculators. A low of nearly 16.86220 was tested a couple of times last Thursday, this price had last been seen in the USD/MXN on the 31st of August 2023.
Intriguing Mid-Term Lows Lurk in the USD/MXN
Traders in the USD/MXN have had an interesting half-year. The currency pair has provided very choppy conditions which may have hurt speculators who had grown accustomed to the rather bearish trend the USD/MXN had provided over the long term. However, the ability of the USD/MXN to demonstrate serious downside momentum again since late October, and trade below the 17.00000 mark may ignite bearish sentiment once more.
However, before USD/MXN traders rush into selling positions of the USD/MXN in pursuit of lows seen in the currency pair in July and August of 2023 when the 16.60000 to 16.70000 ratios were consistently being tested, it needs to be remembered light holiday trading will continue over the short and near-term. Speculators need to be patient in the coming days because many financial institutions will remain stuck in neutral until their corporate clients return from their extended vacations early next week.
Quick Hitting Trades in the USD/MXN
Risk appetite globally will likely remain optimistic moving forward due to the belief the U.S Federal Reserve is going to turn more dovish over the mid-term. However, until full volumes return in the Forex markets trading in the USD/MXN will remain rather spotty and traders should anticipate choppy technical conditions. If the USD/MXN remains within sight of its lows this will be attractive, but traders should use quick hitting tactics and not get overly ambitious regarding moves over the next couple of days.
- The U.S. will release jobs numbers this Friday and this might cause a brief amount of turbulence in the USD/MXN.
- Traders should be cautious early this week and practice conservative trading. Fast choppy reversals technically may flourish today and tomorrow in the USD/MXN.
USD/MXN Short Term Outlook:
Current Resistance: 16.98300
Current Support: 16.92.920
High Target: 17.02700
Low Target: 16.87100
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