(MENAFN- Daily Forex) Short term trading in the USD/MXN has produced slightly consolidated trading. However, the USD/MXN currency pair remains within sight of rather important support levels having demonstrated a solid wave of selling late last week and essentially sustaining lower values. Yes, the past two days did see a moderate step upwards. On the 15th of August the USD/MXN was trading near a low of 19.81000, which it had last really seen on the 27th of June.
Advertisement Latin American currencies can give great price movements.
Trade them with our featured broker.Trade Now !
Currently the USD/MXN is near the 20.00000 mark and showing some ability to remain under this level. Technically the USD/MXN remains in what can be described as its bearish territory, when a one year chart is being inspected. In late May and early June of this year the USD/MXN did test the 19.50000 ratio. What makes this intriguing is the fact the Mexican Peso has been one of the strongest major currencies versus the USD over the past year.Technical Traders do have a rather fascinating Price Range to Consider
Taking into consideration the ability of the USD/MXN to maintain a rather bearish stance compared with many of the other major Forex pairs, a technical question must be asked. As the price of Crude Oil seems to become more tranquil and financial houses consider the potential that U.S inflation may be lessening does this mean the current trading range of the USD/MXN will produce continued solid trading opportunities?
- Important support for the USD/MXN appears to be the 19.90000 to 19.80000 vicinity, if the lower number is challenged and proves durable this could be make for a worthwhile buying wager.
- Resistance near the 20.15000 ratio should be watched in the near term, if this level is sustained, sellers could be tempted to short the USD/MXN within this vicinity.
Risk Taking Tactics Combined with Solid Technical Short Term Perspective of the USD/MXN
Technical traders who are experienced may enjoy speculating on the USD/MXN. If the current range of 19.80000 to 20.15000 is maintained it may prove to be solid wagering ground by taking advantage of support and resistance.
Risk taking tactics should include solid entry levels with carefully chosen stop loss ratios . Looking for quick hitting take profit order to cash out winning positions may prove effective with a slightly wider stop loss being used. But that means very conservative leverage should be used by most traders. If the current trading range holds in the near term, it could provide speculative opportunities for those willing to bet on perceived direction.USD/MXN Short Term Outlook:
Current Resistance: 20.04900
Current Support: 19.91050
High Target: 20.21000
Low Target: 19.76000
Ready to trade our daily Forex forecast ? Here's a list of some of the best Forex brokers to check out.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.