The USD/MXN has started this week within the lower part of its near-term price range which it accomplished this past Friday.
- The USD/MXN currency cross is near the 18.07400 ratio as of this writing, which is within the lower depths of its value that was challenged before going into the weekend.
- The USD/MXN has begun this week thus far being able to demonstrate it can sustain the lower part of its range.
- The currency pair touched a depth of nearly 18.00000 on Friday, which had last been seen on the 25th of June.
The high for the USD/MXN last week was around 18.49327 on last Tuesday. The ability of the USD/MXN to trade lower even in the absence of U.S financial institutions due to the Independence Day holiday may be seen as a potential bearish signal. Trading houses which have been nervous about domestic Mexican politics have likely grown a bit more tranquil. On Wednesday of last week the USD/MXN did touch the 18.12000 area. Only on Friday did the USD/MXN see some momentary upside volatility and this may have been from nervousness surrounding publication of the U.S jobs report.
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Lower Move in the USD/MXN Intriguing
Having endured a difficult bullish climb since the 3rd of June, the USD/MXN may finally be exhausting the nervousness which took the currency pair to the 19.00000 mark on the 11th of June. The move lower in the USD/MXN now may be looking at the 18.00000 level as a target. Speculators should not get overly aggressive while pursuing the USD/MXN and practice the use of limited leverage if they have price goals which seek strong downwards action.
The USD has been weaker in Forex and the USD/MXN has correlated to this behavioral sentiment well. The absence of U.S traders last week however opens the door to more volume today and tomorrow which could test existing sentiment. However the relative weak U.S economic data seen last week, along with jobs numbers which are being viewed suspiciously by many analysts has certainly caused some USD selling.
USD/MXN Coming Impetus from Powell and Inflation Data
While the USD/MXN has been able to trade lower and appears to be rather calm for the moment, impetus is coming for the currency pair. U.S Federal Reserve Chairman Powell will be speaking tomorrow before the Senate, and he will talk to the U.S House on Wednesday. Powell will certainly be asked about his thoughts regarding U.S interest rates. Also coming this Thursday is the Consumer Price Index statistics which are certain to be monitored.
- The USD/MXN may continue to ebb slightly lower today, but its price range may prove cautious as financial institutions await Jerome Powell’s remarks.
- The USD/MXN range between 18.01100 and 18.09100 looks intriguing today.
USD/MXN Short Term Outlook:
Current Resistance: 18.08200
Current Support: 18.06300
High Target: 18.10950
Low Target: 18.01200
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