- The USD/MXN is essentially trading within a price realm it occupied on the 16th of September, the day before the U.S Federal Reserve’s interest rate decision which caused a momentary storm a week ago.
The USD/MXN is near the 18.34850 mark as of this writing. The currency pair saw a predictable surge in volatility begin on late Tuesday of last week which lasted through the Fed’s FOMC decision on Wednesday the 17th of September. The USD/MXN was trading within its current price realm on the 16th of September. Lows were touched on Wednesday of last week near the 18.19750 via speculative spikes that vanished in a blink of the eye.
The momentary fire in the USD/MXN and downwards motion however did not last. The rebound upwards was also swift via choppy conditions. The 18.30000 vicinity quickly returned back as a psychological level. On Friday of last week the USD/MXN challenged highs of nearly 18.47200. Since then more choppy conditions have followed, but little by little a clear sideways crawl has been produced.
Next Round of Price Velocity in the USD/MXN
The USD/MXN does remain within the lower depths of its one year chart. Support levels however continue to provide durable reactions. Financial institutions clearly want more impetus to drive the USD/MXN lower only if bona fide economic results warrant a change to their sentiment. The Fed’s interest rate cut last week had been priced into the USD/MXN before the FOMC Statement. The hope of another interest rate cut from the U.S Fed in October has also been factored into the USD/MXN.
Mid-term outlooks are trading into the daily gyrations of the USD/MXN. But tomorrow the U.S GDP numbers will impact sentiment. Forex has seen a prevailing USD centric weakness emerge, but it has not created a one way avenue for day traders to take advantage of because financial institutions remain nervous about the Fed over the next handful of months. Inflation continues to be talked about without little proof, this is maintaining some balance for the USD in Forex, including the USD/MXN.
U.S Growth Numbers and Inflation Data Thursday and Friday
Day traders need to pay attention to the wide spread being produced in the USD/MXN. It is urged that entry price orders are used to produce an anticipated starting point in order to trade the USD/MXN.
Top Forex Brokers
- Trading up until tomorrow’s U.S growth numbers and inflation report coming on Friday will be nervous, meaning choppy sideways results will likely be seen.
- After the GDP data the USD/MXN could turn volatile but it might not fracture too far away from known realms.
- Looking for additional downside in the USD/MXN may feel tempting, but perhaps quick hitting bets might be best in the meantime.
USD/MXN Short Term Outlook:
Current Resistance: 18.34950
Current Support: 18.34610
High Target: 18.39250
Low Target: 18.30600