USD/MXN is near the 20.58975 mark as of this writing with rapid changes in value seen on brokerage platforms.
- Full forex volume will impact USD/MXN and the broader market today and tomorrow as the jittery trading from the past two weeks due to the holiday season begins to fade.
- The return of financial institutions will create an immediate test of the higher price range that has been contested across Forex as the strength shown is focused on the USD.
USD/MXN has suffered from a bullish trend since late May 2024, but the recent highs seen on New Year’s Eve may have had more to do with a lack of trading volume. USD/MXN’s ability to move towards 20.90000 last week triggered a reversal, and now it looks like near-term support levels are up for consideration. The 20.50000 level may be the target of some speculators as a target below, but this may be too ambitious for retail traders.
Nervous States and US data later this week
USD/MXN remains in the higher elements of its range. Yes, gains were seen just a few days ago, but the results are questionable due to the lack of volume in the forex market over the past two weeks. USD/MXN certainly has more fragile sentiment surrounding it than most currency pairs. With US-Mexico relations and the expected political intrigue unfolding in the coming months, this is when President-elect Trump officially takes office on January 20th.
However, a lot of nervous sentiment around Trump has already been transferred to USD/MXN and the question is whether financial institutions will now start to become calmer. Before the start of the Christmas and New Year holidays, USD/MXN appeared to be making legitimate downward progress and showing the ability to challenge the 20.00000 level. This may be the goal in the mind of financial institutions regarding the outlook for the currency pair, but it is unlikely to be realized in the near future. US jobs numbers via non-farm payrolls this Friday will be the focus of USD/MXN in the coming days.
Speculative bets in USD/MXN for the short term
Due to the return of full market volume in USD/MXN which is expected by tomorrow, the currency pair may give quite uneven results. The sentiment that USD/MXN may be overpriced is logical, but speculative, as the broad Forex market remains nervous about USD strength.
- Short-term traders should closely monitor USD/MXN over the next few days as prices will begin to reflect where financial institutions feel comfortable relative to current values.
- Traders should use quick bets for the next few days and the use of profit taking 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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