USD / MXN developed a rather solid bullish trend last week after producing significant volatile results since the third week of June.
Last week’s trading saw USD / MXN trade near its low of 19.82,000 on the 16the July and highs of nearly 20.25,000 were demonstrated late last night. The upward movement, which developed over the past week, came after several weeks of rather choppy results, which saw significant lows tested as support proved to be sustainable and created a steady stream of reversals. . Speculators should use limit orders on USD / MXN not only to protect their price fill when entering a position, but they should also use strong profit and stop loss ratios to hedge against losses. rapid changes of direction.
The high point reached last night near 20.25000 is intriguing as it follows a week of fairly steady bullish momentum. The achieved value of the ratios tested unpublished since the 23rd June, but the last time these higher prices were seen was when the USD / MXN retreated from the highs reached on the 18the of June when the Forex pair tested the 20.74000 mark. These higher levels developed in the wake of nervous sentiment generated by the US Federal Reserve.
USD / MXN has regularly tested bearish sentiment over the past year of trading and its long term trend can certainly be seen as bearish. But the last six months of trading also produced a rather interesting pattern: after lower support levels between 19.80000 and 19.65000 were tested, violent upside reversals occurred and the USD / MXN took off. could produce fairly rapid upward trends.
Speculators need to decide whether the current short-term uptrend can continue. Technically, it looks like bullish traders could find new momentum. As of this writing, the USD / MXN is trading near the 20.12,000 mark, which is where the 20,10000 and 20,20000 focal points intersect. If the 20.10000 level weakens and support proves to be vulnerable, the 20.07000 to 20.03000 marks could be tested quickly with some bearish action. If the 20.20000 level is broken and prices start to hold above that mark, another test of 20.25000 is quite reasonable.
Irregular results have been common on the USD / MXN in recent weeks and speculators should expect them to expand again. The last week of trading with a stable bull cycle is likely to erode sooner rather than later.
Short-term outlook for the Mexican peso:
Current Resistance: 20.21000
Current support: 20.07000
High Target: 20.34000
Low target: 19.92000