The USD/MXN is hovering over the 20.00000 juncture as of this writing. A high of nearly 20.20000 was achieved on the 20th of September, and choppy traded ensued thereafter. On the 21st the USD/MXN achieved a height of 20.15000 approximately and then fell to a low of nearly 19.93000 late last night. However, as of early today, the USD/MXN has seen a high nearly of 20.12000, before moving slightly lower and traversing its current value.
Technically, the USD/MXN pursued a lower price realm from the 1st of September until the 17th. A fairly strong battle was demonstrated which saw the 19.84000 to 19.96000 values dominate trading during this period. This created a rather intriguing speculative range to try and take advantage of by pursuing quick-hitting reversals.
However, the past handful of days has seen important resistance levels tremble and penetrated higher. While technical traders may be quick to point out that the move higher has occurred because support proved adequate, there can be no denying that global financial nervousness has also added a volatile ingredient into Forex which has caused price fluctuations in the USD/MXN to increase.
Traders who are attracted to the potential of swift results may look at the USD/MXN as an opportunity within its current price realm. If the 20.00000 juncture continues to hold as durable support this could prove to be an ignition for traders who may believe further upside in the short term is a possibility.
Having moved within a tight consolidated value band since the start of September, the USD/MXN has been able to suddenly provide a strong dose of price action which has seen resistance levels brushed aside as loftier values have been challenged. Short-term traders who have bullish sentiment under the present market conditions may want to target nearby resistance as take-profit wagers. If the 20.10000 can be challenged and trading is maintained above this level for a sustained amount of time it could indicate thatupwards momentum will be encountered.
The 20.00000 may prove to be important short term. If this support level is sustained it could be viewed as a bullish indicator, but if the 19.98000 mark begins to be approached it is conceivable the 19.95000 level will then be tested too. However, if these lower marks are traversed today, speculators may see another buying opportunity based on the notion that the USD/MXN may not fall substantially below the 19.94000 ratio short term.
Mexican Peso Short-Term Outlook:
Current Resistance: 20.08000
Current Support: 19.98000
High Target: 20.16000
Low Target: 19.91000