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Consolidation near Key Lower Depths and Nervousness


The USD/MXN has traversed a rather consolidated trading mode the past week, but the tight price range is likely to vanish soon.

The USD/MXN is trading near the 18.74000 level as of this writing. The price of the currency pair has been within the grips of a rather tight range the past week with short bursts of volatility. The USD/MXN has significantly it should be noted, been able to maintain the lower realms of its long-term price technically. The depth near the 18.65000 level achieved on the 18th of January challenged prices not seen since early 2020.


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Cautious trading has overtaken the USD/MXN the past week, perhaps because the current lower values being tested are seen as a potential bottom of value for the currency pair for the time being. Yet plenty of nervousness exists for speculators because it may be a warning that tomorrow’s U.S Federal Reserve pronouncements will have another strong effect on the USD/MXN.

Short-Term USD/MXN likely to vanish in the Coming Day

What has proven to be a rather polite and quiet trading range is guaranteed to vanish soon.  The outlook via the U.S. Federal Reserve’s monetary policy outlook regarding its interest rate stance for the coming months will create instant volatility late tomorrow. Before the U.S. central bank’s pronouncements, an interest rate hike of 0.25% is forecasted to be made official by the Federal Reserve.

  • Support for the USD/MXN has proven durable near 18.715000 in the near term, but if this ratio is penetrated lower is could signify that additional bearish behavioral sentiment exists.
  • Traders should be braced for the likely circumstance that consolidation in the USD/MXN is going to disappear rapidly.
  • Financial houses and large speculative elements will try to position before the U.S. Federal Reserve announcements tomorrow.
  • Timing the USD/MXN volatility will be difficult and risk management is urged for all-day traders.

The Bearish Trend in the USD/MXN Remains Intriguing

Having been able to sustain its lower values the past week after enjoying a significant bearish trend should be of interest to technical and fundamental speculators.  The acknowledgment that the USD/MXN has not suffered a strong reversal higher after touching long-term lows is intriguing and could lead speculators to believe more downside price action could develop.

Wagering on the USD/MXN over the next day and a half will be volatile and traders should use risk-taking tactics with care. Looking for the potential of more downside price action may feel like the correct wager for some traders. Cautious speculators who favor selling positions may want to wait for resistance levels above to be flirted upon, and then ignite their short USD/MXN trades with narrow take profit targets below.

USD/MXN Short-Term Outlook:

Current Resistance: 18.78300

Current Support: 18.72700

High Target: 18.85810

Low Target: 18.68100


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