The USD/MXN is trading around the 17.09500 ratios as of this writing, but readers are urged to check the live market price of the currency pair to compare the dynamic price action being demonstrated.  The USD/MXN hit a high of nearly 17.43000 on Thursday and Friday of last week. However, before going into the weekend the USD/MXN had touched a low around the 17.00800 mark briefly. The USD/MXN essentially went from testing lows from late 2015 early last week, back to higher prices last seen in early June of this year.

However, it is important to point out that the USD/MXN remains well within the lower part of its long-term charts still.  The higher moves last week must be taken into perspective with the acknowledgment that widespread volatility hit the broad Forex market, as risk-averse trading was produced when nervous sentiment boiled early last week. The return on late Friday back to within sight of the 17.00000 level might intrigue USD/MXN speculators who continue to have bearish sentiment regarding the currency pair.

The short-Term Range of USD/MXN 17.05000 to 17.12000 is Intriguing

Broad market sentiment in Forex remains nervous and this can be seen via the price action in many of the major currency pairs, but the return to support levels technically for the USD/MXN is intriguing.  Important inflation numbers will come from the U.S. on Thursday and Friday of this week, and will certainly spur volatility as the U.S. Federal Reserve outlook is interpreted by financial institutions. However, the long-term trend lower in the USD/MXN may not be dead quite yet.

Speculators need to be careful and not target overly ambitious price action.  The volatility seen last week was fast and cannot be expected to reproduce. However, traders who want to look for lower realms in the USD/MXN to be reasserted cannot be blamed. Short term traders should watch support and resistance levels now being fought over around the 17.05000 to 17.12000 marks.

USD/MXN is Attractive but it Proved Dangerous Last Week

• While traders may be tempted to pursue selling positions of the USD/MXN based on slight moves higher, it should be remembered that last week was dangerously volatile. Risk management is essential.
• If the 17.12000 to 17.14000 price levels up above in the short-term prove durable this could indicate that bearish sentiment is still considerable within the USD/MXN and may begin to influence lower movements.  
• Traders should keep in mind the Consumer Price Index data which will come from the U.S. on Thursday.  All trading in the USD/MXN before the published inflation results will be speculative.

USD/MXN Short-Term Outlook:

Current Resistance: 17.13100

Current Support: 17.08300

High Target: 17.16500

Low Target: 17.00100

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