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Mexican Peso/US Dollar

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USD/MXN: Lower Moves Now Must Test Important Support LevelsThe USD/MXN is near the 20.71000 level in early trading this morning as the Forex pair has continued to demonstrate an incremental ability to traverse lower. Speculators who have been pursuing selling positions of the USD/MXN since it hit apex highs of 22.15000 approximately on the 25th of November may think the Forex pair remains attractive from a bearish perspective. Support levels now in sight could prove to be important near term. Traders may have their eyes on the 20.65000 marks as a rather intriguing inflection point when long-term charts are glanced at based on the belief the USD/MXN may be slowly working its way back to a lower known range which was traded for much of 2021. However, traders may not want to get too optimistic quite yet. As the Christmas holiday gets ready to start, trading volumes will become quite thin and the lack of large transactions in Forex could cause the USD/MXN to stall. The trading to come may see volatile spikes in price up and down, but these will likely be demonstrated because of imbalanced positions which could make for choppy conditions which are often unpredictable. Day traders who want to participate with the USD/MXN are urged to use stop losses, which protect their positions against sudden fluctuations that can be dangerous when too much leverage is being used. The downward trend in the USD/MXN may also actually begin to experience a reaction if financial institutions believe the bearish trajectory within the pair has been too fast. Traders who continue to believe selling the USD/MXN is the right decision should monitor resistance levels near the 20.76000 to 20.79000 levels; if these are sustained this could prove important. Traders should not be overly ambitious within the USD/MXN in the coming days. Tight range trading should be expected with the very real potential for a sudden spike to take place periodically. Traders wagering on the USD/MXN should also use solid take profit orders to make sure if a sudden run in value occurs, that they can be cashed out and the profits accounted for within their accounts. Traders who believe the holiday season will provide an opportunity to simply take advantage of tight ranges which will develop in the coming days cannot be faulted. Mexican Peso Short-Term Outlook Current Resistance: 20.79800 Current Support: 20.68000 High Target: 20.89700 Low Target: 20.47000
Short
by SmoothJB
USD/MXNUSD INDEX Statistics SPECULATORS | COMMERCIALS – Percent of OI Longs: 80.5 | 3.1 – Percent of OI Shorts: 11.8 | 80.6 – Net Position: 35879 | -40442 – Gross Longs: 42010 | 1634 – Gross Shorts: 6131 | 42076 – COT Index Reading: Extreme Bullish | Extreme Bearish Scenario A: Wait for the bears market to turn into a bull market following the major trend, along with testing of the rejection zone. Scenario B: Bears could slight break rejection zone testing 20.874 Scenario C: Breakout from the rejection zone and continue the downwards movement (Invalid analysis). Recommendation: Let the price at least test the rejection zone and FAIL before looking for a longing opportunity
Long
by UnknownUnicorn28795659
USD/MXN: Movement Lower Trades Near Important Support LevelsThe USD/MXN has experienced a volatile trading range the past handful of days in the wake of the Omicron coronavirus news. After touching a high water mark of nearly 22.16000 on the 26th of November, the USD/MXN has seen selling and a low of 21.11000 approximately was tested yesterday. A reversal upwards was demonstrated after Wednesday’s lowest depths, and the high for yesterday was displayed near the 21.51000 mark afterwards. However, after hitting this high and seemingly running into a strong amount of headwinds, the USD/MXN did turn lower again and the Forex pair is currently trading slightly below the 21.40000 level. The global Forex market continues to exhibit choppy conditions as financial houses try to achieve a calmer trading landscape, but it is likely the next couple of days will continue to remain rather challenging. Intriguingly, the USD/MXN did test important support ratios when its low of 21.11000 was made. The USD/MXN was also trading near this juncture on the 23rd and 24th of November, which was before the Omicron news caused a hysterical reaction in the markets. The notion that this level was acting like support before the outbreak of recent headlines suggest the juncture of 21.11000 may be seen as an important inflection point. Traders may believe this level could be tested again in the near term, and use it as a potential target if they are selling the USD/MXN. However, it should be pointed out that the 21.11000 mark is actually a distance away from the current price of the USD/MXN. Short-term traders may produce solid results speculatively if they wager on selling action when current resistance levels come into sight, and then aim for nearby support around the 21.32000 to 21.29000 marks. Volatility is likely to remain a staple of USD/MXN trading in the short-term and traders should certainly not be over confident. Bullish traders looking for more upside to develop should also practice caution. Waiting for support levels to be touched and then igniting buying positions may prove to be worthwhile, but like all Forex traders under the present conditions, they are advised not to be overly ambitious. Focusing on the short term for all traders over the next couple of days, may prove to be a healthy trait which helps limit exposure to potentially volatile moves in the USD/MXN. Mexican Peso Short-Term Outlook Current Resistance: 21.41000 Current Support: 21.28000 High Target: 21.53000 Low Target: 21.12000
by SmoothJB