USD/MXN has seen choppy short-term trading as the currency pair remains stuck below its long-term lows.
USD/MXN is trading near 1.36,000 as of this writing, with fairly brisk price action as the currency pair continues to respond to questions about the fundamental outlook. The minutes of the US Federal Reserve meeting made a lot of noise yesterday, but USD/MXN essentially held tight to its lower territory ahead of the release, then set up a slightly volatile range.
The 19.40000 level was key yesterday and USD/MXN dropped to a low near 19.25500 ahead of the US central bank report. The USD/MXN pair then pulled back higher after the reading and headed back towards the 19.40000 area. An early high this morning was around 19.42000 before the sell-off increased.
Interestingly, since December 20, USD/MXN has fallen from near 19.90000 to an important long-term low. The holiday season trading sessions were certainly light and trading will soon resume as the Forex market returns to full volume. Yesterday’s trading results in USD/MXN underscore bearish sentiment and are close to the lows seen in November and December.
Support near the 19.30000 level to watch for USD/MXN
As USD/MXN begins to see full volume again in the near term, it will be important to monitor trends as technical momentum drives price action. Having tested the 19.30000 vicinity from early November to December, the USD/MXN price struggled to maintain momentum below this point. Speculators who believe that USD/MXN is oversold may try to take positions near the current lows, as tests of the currency pair support betting on a small advance.
- Short-term traders should be aware that USD/MXN could be volatile due to increased trading volume and US jobs data due tomorrow.
- Risk management needs to be careful if bear traders continue to look for a lower level and bets should now be extremely ambitious.
USD/MXN support near 19.27000 to 19.25000 could trigger speculative buying
The last two trading days of this week should be treated with caution as USD/MXN tests its all-time lows and volumes. While USD/MXN briefly traded below the 19.20,000 mark in November, sustained price action would need to occur below this ratio to convince a large group of speculators that the bearish trend could develop to the downside. Until then, USD/MXN technically looks like a currency pair that could continue to produce quite an interesting price range in its lower range if financial houses believe that the current price represents true value.
USD/MXN Short Term Forecast.
Are you ready to work with us? daily analysis and forecasts Forex? Here are the best brokers for mexico with which you can safely operate.