Day traders who have been pursuing USD/MXN lower momentum which has shown a rather strong trend for a handful of months were likely rewarded on Friday yet again. Another dose of velocity lower erupted on Friday as the USD/MXN went from the 17.46700 ratio thereabouts to nearly 17.37800 quickly. And the currency pair has maintained its lower realms this morning as the week’s trading has begun, showing almost no ability to reverse higher in a violent manner.
The USD/MXN is now traversing value last seen in the first week of June 2024. Strikingly, the last time the USD/MXN was around this price it was experiencing a surge upwards in the wake of results from the Mexican national election. The USD/MXN was around the 16.96000 vicinity in the last week of May 2024. And long-term technical charts may prove interesting for considerations regarding potential speculative thinking for traders.
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Caution and Realistic Targets for Wagers
The slope lower in the USD/MXN is clear cut. However before day traders bet wildly on the trend downwards, they must remember the perils of intraday trading and know that past performance doesn’t guarantee future results. The momentum lower and ability of the USD/MXN to make support levels look vulnerable is real, but there is the possibility everything can change in the blink of an eye. Risk management has to be used in the USD/MXN.
However, for those interested in pursuing additional moves lower, there does seem to be some justification for believing the trend may still have some room left to maneuver. Financial institutions clearly feel comfortable regarding the dynamic between President Trump and Mexico for the moment. Yes, that could change with a flick of a switch, but Mexico has weathered the White House policies, and the ability of the USD/MXN to move lower needs to be taken seriously.
Long-Term Charts and Near-Term Trading
The Federal Reserve will issue its FOMC Statement this Wednesday. Global markets are proving fast across the board in Forex early today and this will likely continue the remainder of the week.
- The USD/MXN via long-term charts (five years), shows the currency pair trading within lower boundaries in 2024.
- Again, there are no guarantees lower realms will be touched, but the pursuit of nearby support may be appropriate for speculators.
- Fast conditions are a legitimate danger, traders need to use entry orders to protect against wide and quick spreads.
USD/MXN Short Term Outlook:
Current Resistance: 17.37550
Current Support: 17.37125
High Target: 17.41400
Low Target: 17.32600