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Depending on trading timelines a speculator will perceive Forex conditions depending on their own reality. The USD/MXN as of this writing is near the 17.13875 mark this morning, which is still within sight of long-term values last traded late in 2015 and early 2016. However, the USD/MXN also produced rather consolidated price movement over the past week, and in fact, incrementally turned in slightly higher values.
While the USD/MXN remains clearly within the deepest elements of its bearish trend, speculators who have short-term considerations may not care too much about the longer durations. Traders should also acknowledge today, that Forex volumes will be lighter than normal due to the 4th of July holiday which will be officially celebrated in the U.S. tomorrow.
Yes, the celebration in the States is on Tuesday, but many U.S. financial institutions allow their workers to go on holiday at this time. Transactions of the USD/MXN will be much lower than normal today and tomorrow, and traders should be braced for sudden wide prices via bid and ask ratios.
The 17.10000 Ratio may be a Target in the Short Term for USD/MXN Bears
The USD/MXN challenged the 17.05000 ratios on Tuesday and early on Friday of last week, this before reversing with a burst of higher movement and testing the 17.17000 ratios briefly. Yes, the USD/MXN did move slightly lower again before going into the weekend, but the reason for the sudden price velocity up was likely the thinking that the U.S. Federal Reserve may raise its interest rates again in late July.
Trading in the USD/MXN last week correlated to the broad Forex market where the USD has gotten slightly stronger. Better than-expected U.S. Gross Domestic Product results and solid consumer sentiment readings have created a belief among traders the U.S. Federal Reserve will have to raise its Federal Funds Rate by another 0.25%. The USD/MXN has traded within a solid bearish trend the past year and this has happened even as the U.S Fed consistently has raised interest rates, but short-term price action is certainly affected by any shifts of sentiment.
USD/MXN Support near the 17.10000 to 17.05000 Ratios Look Durable in the Near-Term
- Speculators eager to trade today and tomorrow should be careful due to lighter-than-normal trading volumes, risk management is important
- Support ratios in the near term may provide speculators with quick-hitting opportunities to chase rebounds higher, this is based on the prospect of short-term reversals remaining part of the trading landscape possibly over the next couple of days.
USD/MXN Short-Term Outlook:
Current Resistance: 17.14750
Current Support: 17.13300
High Target: 17.17400
Low Target: 17.09600
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