A speculative opportunity has been created by the USD/MXN as it has displayed a rather durable price range the past five days of trading. Support and resistance levels have proven to be rather strong which has allowed traders an opportunity to practice short-term wagers seeking reversals when technical values are touched. The question all speculators need to keep in mind, however, is if and when a breakout will occur.
However, if a trader can use their risk-taking tactics wisely and place their stop loss and take profit targets within the current parameters being generated by the USD/MXN, this may prove to be a rather attractive wager. Correct, trading the USD/MXN and not looking for an overly ambitious outcome may seem quite boring to some speculators who enjoy hunting for greater returns. Yet the current market conditions within the USD/MXN is a good landscape to practice old fashioned technical trading which takes advantage of a rather consolidated range.
Support near the 19.80000 juncture continues to appear rather durable. Until this level is punctured lower and trading values can be sustained beneath this ratio more than a couple of days, the 19.80000 level may continue to be an area that traders using a conservative amount of leverage may want to use as a stop loss if they are buying the USD/MXN slightly above this juncture. The levels of 19.83000 to 19.82000 are also tantalizing as take profit spots for traders who are selling the USD/MXN when the Forex pair moves near the 19.90000 to 19.92000 ratios.
An important factor in trading the USD/MXN for the moment is patience. It is advised to use limit orders to enter the market and have all working positions ready to be implemented quickly. Yes, the USD/MXN may finally break its consolidated path, but until then, there is an advantage to be found in simply participating in the rather unique price range the Forex pair has danced the past week.
Support near the 19.83000 level appears durable and resistance near 19.92000 looks strong. While it may seem rather boring for some speculators not to pursue large trends, a methodical trading range often can provide a very polite trading environment to simply find opportunities with short-term speculative wagers.
Mexican Peso Short-Term Outlook:
Current Resistance: 19.89000
Current Support: 19.83300
High Target: 19.94500
Low Target: 19.79600
