After proving that bullish momentum can be produced within the USD/MXN the past week, the Forex pair has seen bears emerge again and show that they still can dominate the trading landscape. The USD/MXN is near important support levels early this morning and current values will test the perceptions of technical traders who may be contemplating prices below as logical targets.
When the USD/MXN punctured the 20.00000 mark lower yesterday, it might have taken the gas out of short-term bullish movement. If the USD/MXN sustains its value below the 19.90000 near term, it may attract additional speculators who believe that more bearish action can be anticipated. Full market volume has returned to Forex this week.
Trading produced a difficult landscape last week for many speculators who have been favoring bearish positions. The past day-and-a-half, however, have reestablished long-term trends in many Forex pairs including the USD/MXN, and if traders have been patient and used their risk management well, they may feel it is safe to re-enter the market place and pursue their technical perceptions.
Support near the 19.80000 to 19.76000 junctures should be monitored closely; if these values prove vulnerable, the USD/MXN could be ready to challenge low water marks seen late in the first week of January, near the 19.62000 level. The USD/MXN is back within the vicinity of early March 2020 values, and with an additional dash of bearish momentum, the Forex pair could begin to generate the belief that lower targets will emerge sooner rather than later.
The past week of trading has been choppy, but traders who have maintained their beliefs that the USD/MXN bearish trend remains strong will certainly consider pursuing selling positions near term. The USD has been rather chaotic the past week across the board in Forex, but this may have been the result of global financial institutions returning from the long holiday season and again becoming active in the markets.
Speculators should consider selling the USD/MXN using nearby resistance levels as potential targets to trigger their positions with limit orders. If the USD/MXN proves able to sustain its current price values, its long-term bearish trend may not only be enticing for traders, but it might be worthwhile, too.
Mexican Peso Short-Term Outlook:
- Current Resistance: 19.90000
- Current Support: 19.76000
- High Target: 20.02000
- Low Target: 19.62000
