Since reaching a high of nearly 20.74000 on the 18th of June, the USD/MXN has seen a rather volatile reversal ensue and, as of this writing, the Forex pair is again below the 20.00000 juncture. The move lower has not been without complications, however, for short-term speculators. The USD/MXN has been volatile and it has demonstrated rather vicious spikes as equilibrium is sought. Suspicious traders who have been hurt recently while trying to wager on the USD/MXN may be looking at yesterday’s sudden plunge lower as evidence the firework display has additional tricks to show.
The USD/MXM is trading near the 19.98000 ratio now and the Forex pair has proven choppy early. Short-term traders should certainly keep their eyes on the 20.00000 juncture to see if it can sustain itself as resistance or if it is toppled rather easily and aims for the 20.05000 mark. When the 20.03000 price was punctured lower yesterday it set off a rather impactful couple of hours of trading for the USD/MXN and a low of nearly 19.94400 was seen. Since then the Forex pair has traded in a range, but it has not traded over the 20.00000 juncture for nearly half a day.
An important technical aspect within the USD/MXN is the knowledge that on the 26th of July, the Forex pair did touch a low of nearly 19.98000, but did climb early yesterday to a high of around 20.13600 which then seemed to spur on strong selling. Yesterday’s high, intriguingly, was not able to challenge the apex delivered on the 26th with a mark of nearly 20.16400 which might suggest the USD/MXN is incrementally continuing to see resistance lower.
After enduring a wicked bullish ride higher in June, the USD/MXN has been able to inch lower. The fact that the Forex pair is now challenging its lower range once again is a chance for speculators to see if the USD/MXN can move towards the 19.90000 to 19.80000 levels which have proven very difficult to penetrate and sustain values. Short-term traders who are sellers should not get overly ambitious and use current support levels as take profit ratios. Speculators who want to buy the USD/MXN for quick-hitting trades should use these same support levels as a buffer for placing stop loss wagers while seeking upside momentum.
Mexican Peso Short-Term Outlook:
Current Resistance: 20.05800
Current Support: 19.94300
High Target: 20.14700
Low Target: 19.86200
