- The US dollar did rally just a bit during the early hours on Wednesday, but really at this point in time, there's no momentum one way or the other.
- And that does make a certain amount of sense because the US dollar is a little soft.
- But at the same time, we have the employment figures coming out on Friday.
I think Thursday will probably be the same type of session where we're just waiting around. I don't think we have really a whole lot of fundamental reason to go in one direction or the other. Now we did sell off from that initial panic after the tariffs were announced, but now we just find ourselves back in that same consolidation area that we had been in before. I think that's probably where we live for a while between the 20 Mexican peso level on the bottom and the 21 Mexican peso level on the top.
The 50 Day EMA
Top Regulated Brokers
The 50 day EMA is rising to the middle of this range. So, I think it just lines up for a lot of Brownian motion and grinding. If you're a short-term range bound trader, this could be an excellent trading partner for you, or I should say an excellent trading pair. But right now, we're basically right at fair value. If you look at 20 and the 21 levels as your boundaries. That's not surprising because the US dollar is still fairly strong in general. The Mexican economy is struggling with or without tariffs. So this all lines up for a trade that I think is probably shorter term and more of a buy on the dip type of setup. Now, after the Friday session, things could change. But as things stand right now, I think you're still looking at the same action, the same type of setup you saw last month.
Ready to trade our Forex daily analysis and predictions? Here are the best forex brokers in Mexico to choose from.