(MENAFN- Daily Forex) The USD/MXN is trading near the 20.0000 level with rather tight movement in early action this morning. The USD/MXN has remained within the stronger realms of its lower price range and has not seen a massive bullish run higher. The results of these rather consolidated price fluctuations makes the USD/MXN standout, compared to many of the other major currency pairs which have seen the USD continue to gain strength.
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The notion the USD/MXN has not suffered a 'lasting' surge higher is rather remarkable. Technically it can be argued the USD/MXN has correlated to other Forex pairs recently, because on the 12th and 13th lows were being established and there was a robust spike higher that happened mirroring the broad market.Today's Interest Rate Hike from the U.S Fed needs to be watched
The USD/MXN essentially climbed from 19.80000 to 20.10000 in a handful of hours on the 13th of September . However, while a high of nearly 20.16000 was seen on the 16th and 19th, the USD/MXN has come off these highs, this while many other major currency pairs continue to swirl near apex levels against the USD.
While the USD/MXN hovers near the 20.00000 currently, technical traders have plenty of considerations. Having not held onto its top tier within its range, the USD/MXN now awaits the pronouncements of the U.S Federal Reserve today. The U.S central bank will certainly raise hike its interest rate today, but it is the 'outlook' of the Fed which will stir financial institutions in the coming hours.Technical Considerations will be Important within the Consolidated USD/MXN Range
The rather consolidated price action of the USD/MXN leaves considerations regarding direction open to technical interpretations. The current level is important and if the 20.00000 ratio is sustained before the announcements from the U.S Fed this could lead to volatile fluctuations upward.
However, the USD/MXN has shown an ability to maintain the rather stronger values of the Mexican Peso over the past year . This is unlikely to suddenly vanish, which means traders need to also be ready for reversals lower as its predominant range likely continues to show to be demonstrated near term.
- Quick hitting trading which seek upwards value near current resistance levels could prove effective with solid take profit targets being used.
- Conservative leverage today will be essential, because if the USD/MXN consolidation were to vanish trading conditions could become quite violent.
Trading is unlikely to be calm today and traders should be prepared for volatility . Although the USD/MXN has provided speculators with a rather tranquil range, there is a possibility that consolidation could break and a new near term price range becomes established.
Risk management will prove essential for cautious traders . Speculators should expect a test of higher resistance today, with the potential for swift reversals lower. In order to take advantage of this price action, risk tactics should use entry price orders, stop losses and take profit considerations.USD/MXN Short Term Outlook:
Current Resistance : 20.04600
Current Support: 19.96100
High Target: 20.18900
Low Target: 19.84900
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