(MENAFN- Daily Forex) As of this morning the USD/MXN remains within the lower elements of mid and long-term range around the 18.30800 ratio with a wide spread being demonstrated that should be monitored.

The USD/MXN has been able to sustain lower values and as of this writing the currency pair is around the 1.30800 level which has been a rather consistent lower depth since the middle of September. Support around this vicinity and slightly lower values have proven rather robust. Lows seen last Thursday did see the 18.25500 ratios get challenged before a reversal higher was sparked and Friday saw a high around the 18.40700 realm.

The USD/MXN has been able to correlate rather well to the broad Forex market, and the downwards trend in the currency pair is rather evident technically when looked upon with a long-term viewpoint. However, the Mexican Peso may have some nervous sentiment surrounding it near-term as demonstrations against the current government being seen in Mexico City and elsewhere are taking place and attracting large crowds.

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Intriguingly as rather noisy criticism of the current government is being heard in the streets, the USD/MXN remained very stable late last week. The currency pair has opened this morning's early trading without volatile conditions, showing that financial institutions apparently remain rather relaxed about what is taking place in the public. However, day traders should watch the spread between the bids and asks in the coming hours to get a sense of potential dangers that may seep into the USD/MXN regarding potential choppy conditions.

The ability of the USD/MXN to trade within its lower range and touch important support that has been seen the past couple of months periodically is important. Even as noisy crowds criticize the government in public, the USD/MXN has been able to traverse values last seen consistently in July of 2024. But financial institutions may feel some nervousness about leaning into lower depths for the USD/MXN until the noise in the streets of Mexico City subside.

EURUSD Chart by TradingViewPossibly Choppy Conditions Within Known Range

While the 18.30000 ratio remains in sight it may prove difficult for the USD/MXN to consistently find values beneath this level under current circumstances. Financial institutions certainly want clarity regarding economic policy and outlooks regarding interest rates from the U.S, but they also want calm condition within the general public in Mexico.

• For the moment the USD/MXN has proven that nervousness is not high in financial institutions regarding stability.
• If that changes the USD/MXN would certainly become more volatile and possibly provide upside risk.
• However, if conditions remain under control in the short and near-term, the current known range may continue to see challenges which offer choppy conditions as the USD/MXN tests known support levels.
• Sustained trading below the 18.30000 level remains difficult, if accomplished this would show sentiment remains bearish for the USD/MXN.

USD/MXN Short Term Outlook:

Current Resistance: 18.31800

Current Support: 18.30020

High Target: 18.37200

Low Target: 18.27400

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