USD/MXN Analysis Today - 20/05: Lows Test Trends (Chart)
Date
5/20/2024 2:49:26 PM
(MENAFN- Daily Forex) The USD/MXN is traversing values which were last seen in April as the currency pair touches technical levels which have proven volatile before.
The USD/MXN is near the 16.60680 ratio as of this writing as the currency pair lingers within the midst of is lows produced on Friday before going into the weekend. The USD/MXN is also at a price level last seen on the 15th of April. However, when the USD/MXN touched this level then, it was in the midst of a buying surge after the currency pair had challenged a value of 16.25945 on the 9th of April.
The USD/MXN is certainly correlating to the broad Forex market , in the wake of a shift in sentiment regarding the USD, which has generated rather consistent selling in the currency pair since the last week of April. Current values are also importantly lingering near what appeared to be strong support in late March of this year, before the USD/MXN actually produced more selling and touched the low on the 9th of April Decisions and the USD/MXN in the Near-Term
Economic data in the near-term from the U.S will be rather light. But last week's CPI statistics from the U.S which showed inflation slightly below expectations helped reinforce shifting financial institution sentiment regarding the potential of a more dovish Federal Reserve. Many Fed FOMC members will be speaking early this week and this could have an effect on behavioral attitudes for Forex, including the USD/MXN.
The USD/MXN has provided speculators with a long-term downturn and current values which are lingering on important mid-term support ratios should be watched closely. If financial markets remain optimistic via risk appetite in the short-term there is reason to suspect more selling in the USD/MXN could be generated.
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Lower Values and Legitimate Targets in the USD/MXN
Today and tomorrow will offer a good looking glass for the USD/MXN and other Forex traders may use the currency pair as a barometer. The ability to have traded lower in early April on the notion the Federal Reserve was going to potentially start cutting their Federal Funds Rate saw this perspective end abruptly when U.S economic data became rather messy. The USD/MXN traded higher and by the 19th of April the currency pair went above the 17.38000 ratio momentarily. However, this downturn which has been generated the past few weeks actually may find that economic data correlates to outlook regarding Forex ambitions for the moment.
The short-term will have to be watched and the 16.60000 support level could prove to be an intriguing psychological mark for the USD/MXN.
If this level is penetrated lower and sustained it could open the door to more selling in the USD/MXN in the near-term.
USD/MXN Short Term Outlook:
Current Resistance: 16.61100
Current Support: 16.60030
High Target: 16.64200
Low Target: 16.54500
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