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USD/MXN: Near-Term Consolidation Speculatively Intriguing

The USD/MXN has sustained a rather consolidated price range the past week of trading and has been able to remain within the lower depths of its long-term price range.

The USD/MXN is trading near the 18.40000 ratios as of this writing. The currency pair may start to get a growing amount of speculative eyes on its price range which it has produced the past week. The ability of the USD/MXN to maintain its strong bearish stance as most other major currencies paired against the USD struggle is intriguing. Long-term lower values which have not been traded since July 2018 can be looked at by pulling out five-year charts.


The USD/MXN has brushed aside concerns about a more aggressive U.S. Federal Reserve for the past year. The Mexican Peso has remained one of the strongest currencies in the world and its ability in the past few weeks to continue to fight is lower is noteworthy. However, now that seemingly critical support has created a consolidated price floor for the USD/MXN speculators may be growing anxious.

Day traders who have been pursuing the downward trend of the USD/MXN should certainly know there are no guarantees of a one-way direction. The USD/MXN for the moment has produced a choppy consolidated range which may be best to wager on using narrow take profits, which seek small changes in direction via the value moves of the USD/MXN. However, the consolidation is also likely to suffer a volatile change and when this occurs, risk management will be important to have already in place.

The U.S. will see the CB Consumer Confidence numbers today. If the outcome is stronger than expected this could fuel some upwards mobility for the USD, and perhaps even buying in the USD/MXN momentarily. A stronger number would indicate the U.S Federal Reserve has more ammunition to maintain its aggressive interest rate hikes policy.

  • However, if the CB Consumer Confidence number comes in weaker than expected, this could cause some more selling of the USD/MXN.
  • Support levels have proven durable the past week, but if the 18.37000 to 18.36000 begin to be challenged this could mean the USD/MXN could traverse lower in the near term.

The USD/MXN continues to trade near important long-term lows. Traders who want to continue pursuing the downward momentum of the USD/MXN cannot be faulted, but they should be patient and not use a wild amount of leverage. Risk-taking should be done with well-chosen take-profit targets that are not overly ambitious. The tight trading in the USD/MXN is attractive because it feels as if risk can be controlled, but speculators should be prepared for sudden volatility which could erupt without notice.

Current Resistance: 18.42410

Current Support: 18.36900

High Target: 18.47100

Low Target: 18.32400


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