The USD/MXN is still within the lower depths of it month’s technical perspective, but trading late last week saw some upwards price momentum.
- The U.S Memorial day observance means trading in the USD/MXN will be very light as this week begins.
- The price of the currency pair at the time of this writing is near 16.67615 with quick changes of value.
- Speculators tempted to trade amidst the lighter than normal Forex volumes today should use entry price orders to make sure their fills are not delivered in a negative manner.
Trading last week in the USD/MXN saw a low around the 16.52900 ratio on Tuesday, but after this depth was achieved the currency pair did start to incrementally climb. Some financial institutions may feel like the selloff in the USD/MXN may be a bit overdone, but reading too much into the rather slight climb higher in the currency pair could prove wrong.
Lower Trend and Speculative Wagers in the USD/MXN
The U.S will release its Gross Domestic Product reports this Thursday; last month’s growth numbers came in significantly below expectations. If these coming GDP statistics also prove lackluster and below anticipated results it would certainly spur on additional USD weakness via outlook. However, until then the USD/MXN like the broad Forex market may see a test of known ranges and remain choppy.
While many financial institutions are leaning towards a more dovish approach from the U.S Federal Reserve, inflation concerns remain in place. Yet, on a positive note for those trying to gauge potential economic data which will be released in the coming months, the price of WTI Crude Oil is currently showing the ability to stay under 80.000 USD, which may help the inflation fight. This could help short-term behavioral sentiment to see risk appetite increase, and bearish attitudes towards the USD/MXN for traders to consider.
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USD/MXN Support Levels and Technical Perspectives
The long-term lower bearish trend of the USD/MXN remains tantalizing, but day traders need to consider the potential that support ratios may cause headwinds for the currency pair. While lows were certainly challenged early last week, there was not enough impetus for the USD/MXN to continue moving lower as U.S economic data was slightly mixed with stronger than expected Core Durable Goods Orders turning up, but lower Inflation Expectations sentiment also being seen on Friday.
- Financial institutions may be leaning towards a weaker USD centric stance, but weaker GDP reading this week would help solidify their beliefs.
- The U.S holiday today means financial markets will be very quiet and traders should be careful if they want to wager in the short-term.
USD/MXN Short Term Outlook:
Current Resistance: 16.68710
Current Support: 16.66590
High Target: 16.71475
Low Target: 16.63780
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