The USD/MXN is around the 17.91665 ratio as of this writing with fast changes of values being seen on brokers’ platforms, this as light holiday trading conditions create wide spreads which day traders need to acknowledge.
The USD/MXN has shown an ability to sustain price action below the 18.00000 rather effectively since Monday of last week. The bearish trend in the USD/MXN has been noteworthy. The move lower in the USD/MXN isn’t only about USD centric weakness in Forex, but is also due to risk premium evaporating from the currency pair as Mexico has shown an ability to deal with the U.S White House rather effectively.
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As of this writing the USD/MXN is near the 17.91665 ratio, but readers are encouraged to compare this stated value to current market conditions as they read. The USD/MXN is seeing a wide bid and ask via brokers’ spreads because holiday trading volumes are light. And ladies and gentlemen, volumes will remain thin today and tomorrow and then get lighter on Wednesday before the advent of the New Year’s Day festivities globally.
Resistance and the 18.00000 Level Barometer
The USD/MXN saw a low of nearly 18.84670 this morning upon opening when imbalanced orders hit the marketplace. However, a quick reversal higher was seen. Yet, the ability of the USD/MXN to traverse to the lower depths shows that large players and financial institutions are likely continuing to focus on the bearish trend of the currency pair. The problem for day traders the remainder of this week will be that trying to take advantage of this lower trajectory may prove difficult.
Under current Forex conditions as thin holiday markets rule the landscape, traders without deep pockets who feel they can find opportunities are likely going to be using take profit orders. Cashing out winnings when they materialize, before vanishing into air, is a solid tactic because reversals could develop without warning. The 18.00000 looks like a resistance level above and in fact the 17.95000 ratio may prove solid as a top level.
Short-Term Considerations for Speculators
Any trader considering a USD/MXN position today needs to understand holiday market dynamics.
- While some Forex will certainly be seen and the USD/MXN has proven a rather capable downwards trajectory, there will be no free money handed out to participants.
- Intraday fluctuations today and tomorrow could prove fast.
- Imbalanced orders activated by large traders can and will cause occasional surges in value that are not easy to examine.
- Looking for lower price action in the USD/MXN seems logical, but because of the holidays an equilibrium may prove durable as values get tested in known realms.
USD/MXN Short Term Outlook:
Current Resistance: 17.91700
Current Support: 17.91200
High Target: 17.96110
Low Target: 17.88700
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