The USD/MXN is trading near the 1.36000 ratio as of this writing with rather a quick price movement as the currency pair continues to react to questions regarding fundamental outlooks. The U.S. Federal Reserve’s Meeting Minutes caused a stir yesterday, but the USD/MXN essentially held its lower territory firm going into the publication and then produced a slightly choppy range.
The 19.40000 ratio was important yesterday and the USD/MXN fell to a low of nearly 19.25500 before the U.S central bank’s report. Then the USD/MXN reversed higher after the reading and back up towards the 19.40000 vicinities. This morning’s early high was around the 19.42000 ratio before some selling developed.
Intriguingly since December 20th, the USD/MXN has fallen from a value of nearly 19.90000 back to important long-term lows. Holiday season trading sessions were certainly light and transactions will increase in the near term as Forex returns to full volume. Results from yesterday’s trading in the USD/MXN underscore bearish sentiment and are near important lower prices seen in November and December.
Support near the 19.30000 Level Should be watched in the USD/MXN
As the USD/MXN starts to experience full volume again near-term it will be important to monitor trends as technical momentum stirs price action. Having tested the 19.30000 vicinities from early November until December, the price of the USD/MXN found it difficult to sustain momentum below this juncture. Speculators who believe the USD/MXN is oversold may attempt buying positions near the current depths as the Forex pair tests support to wager on a small upside move to develop.
- Short-term traders should acknowledge volatility may arise in the USD/MXN because of increased trading volume development, and the jobs data that will be published in the U.S. tomorrow.
- Risk management should be done with care if bearish traders continue to search for lower depths, and wagers should now be overly ambitious.
USD/MXN Support near 19.27000 to 19.25000 could Ignite Speculative Buying
The last two trading days of this week should be treated carefully as the USD/MXN tests its lower values and volumes increase. While the USD/MXN briefly traded below the 19.20000 mark in November, sustained price action would have to occur beneath this ratio to convince a large group of speculators that the bearish trend can build downwards. Until then the USD/MXN looks technically like a currency pair which may continue to produce a rather interesting price range within its lower range if financial houses believe the current price represents fair value.
USD/MXN Short-Term Outlook:
Current Resistance: 19.40300
Current Support: 19.33500
High Target: 19.45700
Low Target: 19.28400
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