The USD/MXN remains ultra-attractive for speculators with a slight taste for volatility and the ability to manage their risk wisely. After hitting critical resistance late on Thursday of last week near the 22.80 level, the Mexican Peso has put in a solid reversal and is challenging short term support levels consistently.
The past five days of trading have produced a solid range between the 22.0000 and 22.7000 junctures which has certainly provided technical traders with plenty of opportunities to test short term ranges. Trading early today indicates support levels may remain vulnerable and if the 22.2000 mark is broken and selling of the USD/MXN remains intact, speculators will certainly set their sights on the 22.0000 to 22.1000 value junctures for quick profits.
Also of interest is the technical perspective that a predominant amount of trading for the USD/MXN currency has been between 21.6000 and 22.3000 during the month of June. If the mid-term trend of the Mexican Peso maintains its current trend traders are likely to pursue selling opportunities of the US Dollar. The USD/MXN may also get an additional boost of selling action today if risk appetite maintains is stronger leaning and early indications from equity indices continue to appear positive in North America.
The Mexican Peso has gained plenty of value since falling to low values near 25.0000 against the US Dollar as coronavirus fears hit the forex markets. Trading since the beginning of May has produced solid selling of the USD/MXN currency pair. Short term traders can also see via a one day chart that the USD/MXN touched important resistance near the 22.7000 mark and has reversed twice from these weakest levels and reignited selling of the USD/MXN.
Yesterday’s trading of the Mexican Peso followed its recent short term one week trend without major volatility. The USD/MXN forex pair has certainly been known to experience sudden volatility, but today’s outlook remains calm and traders will have the opportunity to test their perspective in a calm manner. Short term speculators may look to short the USD/MXN at its current levels and continue to seek down side pressure and target greater values for the Mexican Peso between 21.8000 and 22.0000.
Mexican Peso Short Term Outlook:
Current Resistance: 22.7500
Current Support: 22.1000
High Target: 22.9000
Low Target: 21.9000
