The USD/MXN has returned to its lowest depths again, as it tests support levels that have proven durable before, but certainly, look speculatively inviting for wagers.
The USD/MXN is hovering barely above the 18.00000 mark as of this writing. The USD/MXN has recovered its bearish trend with solid selling demonstrated since touching a high of nearly 19.24000 on the 20th of March. The volatility of the USD/MXN should make traders think twice before pursuing the currency pair with wagers, but the ability to produce swift trends is attractive for speculators who feel they have a ‘known’ perspective.
Traders are advised to take a mid-term look at the USD/MXN to gain some insights into the movements of the currency pair the past three and six months. Yes, the USD/MXN has certainly been able to attain a rather solid move downwards, but it has also seen swift reversals higher, which if not wagered on correctly by using risk management – meaning stop losses if selling positions were being pursued – have cost traders a lot of money.
The last time the USD/MXN was trading near its current values steadily was in 2017. Yes, in 2018 the USD/MXN touched the 18.00000 mark, but it then started to move upward with a rather solid tendency. However, speculators should note that in order to really get a feel for what the USD/MXN could conceivably do next, means that technically they might want to consider charts longer than 5 years ago. The ability of the USD/MXN to maintain its current price range in the short and near term should be monitored.
- Traders who want to continue to seek downward momentum and pursue the bearish trend of the USD/MXN cannot be blamed, but they should not get overconfident or overly ambitious. Narrow price targets are suggested.
- If the USD/MXN goes below 18.00000 in the short term and maintains values below this important psychological mark this could prove to be significant.
Across the Forex board in early trading today the USD has been slightly stronger, but not against the Mexican Peso. The USD/MXN continues to see a rather impressive selloff being maintained, but traders cannot count on a one-way direction and need to use their risk-taking tools appropriately. The near term is likely to produce choppy results for the USD/MXN and traders should remember the end of this week promises volatility because of the U.S jobs numbers and the Good Friday holiday which will cut into trading volumes.
Current Resistance: 18.03100
Current Support: 17.99400
High Target: 18.10400
Low Target: 17.89010
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