The USD/MXN is near the 20.58975 mark as of this writing with fast changes to value being seen on broker platforms.
- Full volume in Forex will have an impact on the USD/MXN and the broad market today and tomorrow as nervous trading from the past two weeks because of the holiday season starts to fade away.
- The return of financial institutions will create an immediate test of the higher price range which has been challenged across Forex as USD centric strength has been exhibited.
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The USD/MXN has suffered from a bullish trend since late May of 2024, but the recent highs seen on New Year’s eve may have had more to do with a lack of trading volume. The ability of the USD/MXN to move up towards the 20.90000 last week sparked a reversal to take place, and now short-term support levels look ready to be considered. The 20.50000 level may be a target by some speculators as a goal below, but this may be too ambitious for retail traders.
Nervous Conditions and U.S Data Later this Week
The USD/MXN remains in the higher elements of its range. Yes, highs have been seen only a handful of days ago, but the results are suspicious because of the lack of volume in the Forex market the past two weeks. The USD/MXN certainly has fragile sentiment surrounding it more than most currency pairs. Because of the relationship between the U.S and Mexico and the expected political intrigue which will develop over the coming months, this as President-elect Trump takes office officially on the 20th of January.
However, a lot of the nervous sentiment surrounding Trump has already been traded into the USD/MXN and the question is if financial institutions will now begin to become calmer. Before the onset of the Christmas and New Year’s holidays, the USD/MXN seemed to be making legitimate progress downwards and showing an ability to challenge the 20.00000 level. This may be a goal in the mind of financial institutions regarding outlook for the currency pair, but it will likely not be accomplished in the near-term. The U.S jobs numbers via the Non-Farm Employment Change results this coming Friday will be a focus in the coming days for the USD/MXN.
Speculative Wagers in the USD/MXN for the Short-Term
Because of the return of full market volume in the USD/MXN expected to be seen by tomorrow, the currency pair may produce rather bumpy results. The feeling that the USD/MXN may be overbought is logical, but it is speculative, because the broad Forex market remains jittery about USD strength.
- Short-term traders should monitor the USD/MXN closely over the next couple of days because prices will start to reflect where financial institutions feel comfortable regarding current values.
- Quick hitting wagers the next couple of days should be used by traders and the use of take profit orders is encouraged.
USD/MXN Short Term Outlook:
- Current Resistance: 20.59800
- Current Support: 20.57600
- High Target: 20.62300
- Low Target: 20.53700
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