(MENAFN- Daily Forex)
As of this morning the USD/MXN is trading near the 17.15250 ratio. The price of the currency pair is traversing close to near-term support levels which developed on Friday when the USD/MXN briefly challenged the 17.12920. While the lows from Friday did not test the values of the USD/MXN seen on early Monday the 22nd of January near the 17.05400 vicinity, they did demonstrate the ability of the currency pair to go into the weekend near important lower marks.
Volatility in the broad Forex market has been seen in January and the USD/MXN has correlated to other major currency pairs. Last week's trading saw some early buying which took the USD/MXN to a high of almost 17.38560 on Wednesday, but then produce a rapid selloff which took the currency pair to lows on the same day which are now being tested Considerations as the U.S Fed Lurks for the USD/MXN
Market conditions are likely to be rather choppy in the near-term as financial institutions brace for the U.S Fed's FOMC Statement this coming Wednesday. USD/MXN prices are now hovering near important short-term support, this while a look at a one month chart shows the price realm to still be within the higher elements of its technical chart .
Traders who have been relentlessly pursuing downward movement from the USD/MXN cannot be blamed for believing additional selling opportunities exist. However financial institutions which have created some buying momentum in the USD/MXN and other major currency pairs during January based on the belief the USD was oversold in December are likely waiting for more impetus before they become bearish once again.
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Traders who believe more downside from the USD/MXN is going to develop should remain conservative early this week. If they want to be sellers they might want to wait for resistance levels to be challenged and look for potential technical reversals lower. However speculators probably should not bet on sustained selling in the near-term, this as the U.S Fed prepares to make its official monetary policy statement in the middle of this week.
If current resistance near the 17.16990 to 17.18100 prove durable, this could be a sign additional selling sentiment remains ready to ignite in the USD/MXN/ Support ratios short-term around 17.15090 17.14900 should be watched; if they prove vulnerable a test of the 17.11000 could be seen.
USD/MXN Short Term Outlook:
Current Resistance: 17.16990
Current Support: 17.15010
High Target: 17.18.100
Low Target: 17.11300
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