The USD/MXN is within the lower elements of its one week trend, but remains within the higher part of one month technical consideration, opening the door for a variety of speculative perspectives.
- The USD/MXN remains a tantalizing speculative currency pair.
- The USD/MXN has been within a volatile mix of nervous behavioral sentiment trading for over six months. The past month and a half with the onslaught of the U.S election and results have not made things easier.
- The USD/MXN continues to see volatile conditions which are causing reversals and dangers for day traders.
Top Regulated Brokers
The USD/MXN is trading near the 20.40450 ratio as of this writing with fast conditions pervading already on a Monday morning. The USD/MXN has been able to come off highs seen early last week when the 20.70000 level was challenged. Incremental selling suggest financial institutions believe the USD/MXN may have entered overbought territory. However, depending on timeframes of technical charts, speculators may come away with different outlooks.
Short-Term and Mid-Term Attitudes in the USD/MXN
Having traded with a significant bullish trend since the elections in Mexico which made the Morena political party and its populists rhetoric more powerful late in the spring of this year, the USD/MXN has come under additional pressure with the election of President Trump. While the one week trend of the USD/MXN lingers within lower realms, the one month chart for the currency pair suggests that financial institutions remain cautious regarding the dangerous combination of Mexican and U.S political intrigue building instead of eroding.
Retail traders should not get too ambitious regarding the potential of sustained moves in the near-term for the USD/MXN and simply look to take advantage of their perceived support and resistance interpretations. The U.S will not be releasing major economic data today or tomorrow, meaning existing behavioral sentiment will continue to rule the USD/MXN. Short-term and mid-term outlooks for the USD/MXN both appear nervous.
USD/MXN Higher Price Range and Acceptance
Having been one of the strongest currencies over the past few years, the Mexican Peso appears ready to sustain its higher price values via the USD/MXN. The price of Crude Oil is likely going to remain rather stable to weak over the mid-term as U.S energy policy changes and is more proactive regarding production. Also, there is the potential that the Trump administration could try to put Mexico under pressure regarding U.S trade agreements, but also via Mexico’s trade agreements with China.
- These thoughts might make financial institutions remain rather nervous about their outlook for the Mexican Peso over the mid-term and keep the USD/MXN within its loftier values.
- The question now becomes where fair equilibrium will stabilize.
- Is the current range of 20.30000 to 20.60000 a legitimate wagering ground for the near-term?
USD/MXN Short Term Outlook:
Current Resistance: 20.45900
Current Support: 20.40500
High Target: 20.53100
Low Target: 20.34800
Ready to trade our Forex daily analysis and predictions? Here are the top brokers in Mexico to trade with.