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The USD/MXN has seen an upwards track develop and its higher prices become sustained over the near-term, this as global market sentiment shows signs of nervousness in Forex.
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The USDS/MXN is trading near the 17.18250 mark with its typical fast results flourishing. The high for the USD/MXN last week occurred on Thursday when the USD/MXN ran into the 17.25000 level but then reversed slightly. However the move downwards after this near-term high was achieved has not been convincing and the USD/MXN remains within the higher elements of its one week chart.
Technical traders will have many interpretations to make regarding the recent trading of the USD/MXN. A high of nearly 17.70000 was hit on the 7th of September, but since this speculative buying wave occurred, the USD/MXN has shown a sincere amount of selling power, which has taken the currency pair back to within sight of it mid-term lower values. Yet, last week’s trading does show the USD/MXN does not trade in a vacuum and it is affected by the nervous banter of global markets.
The USD/MXN did hit the 17.00000 level last Wednesday, showing a desire it would appear by financial institutions to purse the long-term lower trend the currency pair has established. Yet the upwards momentum and ability to touch the 17.25000 level less than one day later shows volatility can hit the USD/MXN like all other major Forex pairs. The strength of the USD as global markets have reacted nervously to risk perceptions has certainly caused the USD/MXN to creep upwards again the past few days and sustain its higher price range.
Traders should monitor short-term resistance levels to keep tabs on the existing sentiment in the USD/MXN. Financial institutions globally are concerned about the outlook for the U.S Federal Reserve which remains hawkish, higher energy prices, and other concerns which could cause headwinds for U.S equities which seemingly could cause a reaction and spark risk adverse trading in Forex and affect the USD/MXN.
However, the USD/MXN has been able to demonstrate a tendency to stabilize and often pursue its own direction. While higher energy prices in the U.S and elsewhere is a burden, stronger Crude Oil prices in fact help Mexico and give the Mexican Peso some fundamental strength. Yes, as always complex issues drive the direction of Forex and the USD/MXN.
- Short-term USD/MXN should remain cautious as nervous winds blow in the global financial markets.
- Recent bullish strength in the USD/MXN could continue to be seen in the near-term, particularly if U.S equity indices struggle over the next few days.
- Traders need to understand short-term sentiment is fragile and will affect the value of the USD/MXN regardless of the currency pair’s long-term trend.
Current Resistance: 17.20500
Current Support: 17.16250
High Target: 17.26100
Low Target: 17.12220
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