The USD/MXN has been able to incrementally lower its higher resistance levels the past few days as bearish sentiment intrigues traders.
The USD/MXN has produced some downward movement the past few days of trading and is hovering within sight of the important 20.00000 price. Early February has produced choppy trading in which highs have been challenged by the USD/MXN as the Forex pair has mirrored many other major currencies short term. However, after achieving a long-term bearish trend, speculators who still perceive that technical charts are not about to produce a massive run higher may be getting ready to wager.
The current price vicinity of 20.10000 for the USD/MXN may prove to be a catalyst for the Forex pair today as sentiment is deciphered. If the current value range of the USD/MXN is able to hold and actually prove that it can begin to knock on the door of support below, traders may begin to believe an additional wave of downside momentum is going to be generated.
While the past three months of trading within the USD/MXN have produced a rather difficult trading landscape, the value of the Forex pair has maintained its bearish stance. In the past few months, there have been some dramatic spikes higher, but the 20.60000 level has been able to quickly cause reversals lower when it has been touched. On the 4th of February, the 20.50000 level was briefly tested, but is also was able to produce swift selling action.
Since the 27th of January, the USD/MXN has not been able to sustain its value beneath the 20.10000 price. However, the ability of the Forex pair to challenge this value early and sustain a short-term tight range nearby is an intriguing potential signal that the USD/MXN may be ready to reestablish bearish momentum.
Traders should not look too far ahead, but the 20.00000 juncture is important as a potential target below. If enough selling comes into the Forex market near term for the USD/MXN, traders cannot be faulted for believing that the 20.00000 juncture will prove vulnerable. The support level of 19.96000 may prove to be an important barometer. If this mark is punctured, traders should expect fast trading conditions.
Traders who believe that selling pressure will continue to be displayed within the USD/MXN cannot be faulted. Selling the Forex pair on slight reversals higher and using nearby resistance as stop loss ratios could prove to be effective while anticipating further bearish values.
Mexican Peso Short-Term Outlook:
- Current Resistance: 20.14700
- Current Support: 20.01500
- High Target: 20.24000
- Low Target: 19.92000