Traders who have been pursuing the bearish momentum of the USD/MXN have likely been rewarded the past week. As of this morning, the Forex pair remains under the important 20.00000 juncture and traders now need to contemplate their next trading moves while taking into consideration technical charts and their own sentiment.
The past four weeks of trading within the USD/MXN has seen a bearish trend reemerge after seeing buying momentum cause higher price action from the middle of February until the 8th of March. Just two days ag,o the USD/MXN was trading near lows and below the 19.80000 mark, but since then, bearish activity has run into rather stiff support levels. However, the USD/MXN, while attaining a high of 19.99900 as a reaction to the lows produced on the 20th of March, has not killed off its bearish momentum and traders may be glancing at three- and six-month charts to chart their next speculative endeavors.
Short-term traders can use resistance marks which are tight as potential areas to seek further downside price action. However, after achieving a significant bearish trend the past four weeks of trading, speculators may have to consider the notion that the current price range of the USD/MXN could produce choppiness near term.
While the downside may appear attractive, traders should not aim for targets that may be out of reach presently. The low water marks achieved a couple of days ago tested values not seen since the end of January. The USD/MXN does seem to have recaptured its bearish stance, but important support junctures of 19.80000 to 19.60000 could prove hard to penetrate.
However, if the USD/MXN is able to sustain its value near the 19.90000 juncture and not put in a volatile test of resistance levels perched above, this may be an indication that the tight range of the Forex pair could ultimately become bearish again. In the meantime, conservative traders may want to look for slight rises in value within the USD/MXN and sell while looking for a cautious amount of profits.
The USD/MXN does appear to have the ability to maintain its bearish range. Traders may want to keep looking for selling opportunities, but they should probably have their take-profit orders working to make sure they do not suffer from short-term choppiness, which might prevail by focusing on quick-hitting nearby targets.
Mexican Peso Short-Term Outlook:
Current Resistance: 20.04000
Current Support: 19.83000
High Target: 20.08000
Low Target: 19.71000
