The USD/MXN was near the 17.97500 vicinity on Friday before coming off of the highs and settling around the 17.92000 ratio going into the weekend. Although the USD/MXN has opened with slightly lower values in early trading this morning, sustained higher realms are being exhibited as the 17.86000 level is challenged with a wide spread that retail traders should pay attention to before placing wagers.
Global financial institutions attitudes regarding the Iranian war remain nervous. The higher realms of the USD/MXN which haven’t been seen steadily since the second week of January indicate large players fear a protracted crisis in the Middle East. While Mexico is one of the world’s largest producers of Crude Oil, the higher prices of the commodity are not translating into a stronger Mexican Peso yet.
Near-Term Speculative Action and Results
Day traders who decide to actively pursue the USD/MXN today and the coming days this week should not get overly exuberant about their outlooks. While it may remain a logical thought to look at the mid-term as a place where confidence will arise and the Mexican Peso will be stronger, betting on this outcome for today and tomorrow could prove problematic. Timeframes will produce different results.
Technical traders may be tempted to believe the fact that because the USD/MXN didn’t puncture the 18.00000 level proves there is a solid amount of resistance within eyesight using near-term charts. However, the threat of sudden developments from the Middle East and amplified with potential noisy statements from the White House could easily shake any confidence being gained. The U.S Federal Reserve will announce its interest rate decision this coming Wednesday. But there is almost no chance the central bank will offer anything except a cautious outlook regarding borrowing costs as the Iranian war effects the price of Crude Oil and threatens to ignite inflation globally.
Day Traders Wagers and War
The Iranian war is not going to disappear from the news in the coming days. The question for USD/MXN and all Forex traders is how financial institutions will react.
The USD/MXN may look high to many Forex traders considering its rather long-term bearish trend achieved leading up to the war, this because the currency pair traversed near the 17.17000 on Friday the 27th of February.
However, outlooks have changed quickly and this effects all short and near-term wagers.
Support levels technically could prove to be intriguing for those with the stomach to venture into speculative positions at this time.
The USD/MXN like all of Forex will be effected by a whirlwind of shifting sentiment that watches developments from the Middle East.
USD/MXN Short Term Outlook:
Current Resistance: 17.87600
Current Support: 17.84800
High Target: 17.96100
Low Target: 17.81700