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U.S. Dollar / Mexican Peso

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USDMXN trade ideas

USDMXN set for a rebound! just not yet!This is my personal take on the upcoming rebound of the MXN peso. The past few weeks, We have seen how key resistances have failed to stall the dramatic gains of the mexican pesos vs the dollar of over 30%. By closing on the 17.26 -17.29 mark it will trigger a key important level of support, which could propell the exchange to hit the highest mark since March 2023. In this case we have two scenarios A] The rebound at 17.26-17.29 is weak and fails to hit passed the 18.36 resistance level. Signaling a continuation of the bear market. B] The rebound passes the 18.37 resistance level. Signaling a second time for a reversal of the bear market. However the likelyhood of pattern to test a slightly higher price level is absolute. On the otther hand, if the 17.25 level is broken, the MXN peso is set to be one of the best performing currencies for the rest of the year. Looking to touch new lows such as 14 or even 12 MXN per USD levels and to see the Peso maintain around the 13 - 15 price level for the rest of the year. Levels not seen never since 2014 - 2015 respectively. The rate will probably leave Mexico hurting economically as the governent will need to step in to ease the high exchange rate which will leave Mexico uncompetitive and increase inflation to new highs. The 2024 will see the Mexican peso trying to regain the 17-18 mark with mix results. This should secure the MXN as one of the best mid and long term in FX markets.
Long
by suikaking
Why the Mexican Peso Surged Against the USD? On Wednesday, the US dollar decreased in value against other major currencies, including the Mexican peso, by over 1%, due to reports of slower than expected US inflation. This suggests that the Federal Reserve may pause its interest rate hikes. According to data from the US Labor Department, inflation in April decreased to 4.9%, which is the lowest year-over-year increase in two years and lower than market forecasts of 5%. The slower inflation was attributed to slower growth in food prices and a further decrease in energy costs. However, core inflation remained high at 5.5%, indicating that interest rates may need to stay high for some time to control it. Fed funds futures traders are anticipating a pause before expected rate cuts in September, which might be a little optimistic, as the Fed's target range remains at 5% to 5.25%. The Mexican peso gained strength to 17.544, its highest value since July 2017, as the difference between US and Mexican monetary policies became more pronounced. The RSI on the USDMXN suggests it is in an extreme oversold condition, so a pullback may be necessary. Resistance levels from 2017 for the pair may no longer be relevant, but the strongest value the peso reached in 2017 was $17.430, while the peak in 2016 was $17.050. For fundamental context, Banxico increased rates to an all-time high of 11.25% in March, despite a decrease in annual headline inflation that was greater than expected. Mexico's proximity to the US has also made it an attractive location for foreign companies to open factories targeting the American market and diversifying production from China. Additionally, the US economy's robust state has led to a rise in remittances to Mexico from expats.
by BlackBull_Markets
2
usdmxnLooking at usdmxn here i'm seeing a rejection formed with a Bearish OB on the Daily time frame. with Consolidating in a Triangle formation where price has finally broke and closed below this structure.formation At the same time we are breaking A major support area where we can see price continue to drop to the downside!! This is for information and demo purposes only! please feel free to comment below and let me know your feed back on this or any one of my trade ideas shared! Disclaimer - past profits don't guarantee future results, trading is risky and you can loose 100% of your account balance! Risk management is critical when you decide to trade in the forex markets
Short
by therealbinarymaster