Loading...
by Darius Anucauskas

USD/MXN – Wait For The Break

After a quite decent decline from the peak of the 15th of June, USD/MXN found good support near the 18.790 zone. Since the 12th of July, that level continues to hold the rate from dropping further, this way signalling that the bulls see it as an important area, where they don’t want to let bears through. The pair is now sitting in a price range between the 18.790 and 19.174 levels, but the prevailing trend is still to the downside. Nevertheless, we will wait for a clear break and a close out of the range before we get comfortable with the future direction.

If the downside pressure remains present, USD/MXN could eventually break the lower bound of the range and make its way lower to the 18.600 support area, marked by the low of the 27th of April. If that area is not able to withhold the pair from declining further, then the next potential target could be the 18.420 hurdle, which, on the 20th of April, held the rate from dropping more.

Alternatively, if USD/MXN moves above the 18.965 line, this could lead to a test of the upper bound of the aforementioned range at 19.174, a break of which could open the door towards the next potential area of resistance at 19.285. If that doesn’t stop the pair from rising further, then we could see USD/MXN moving up towards the 19.560 level, marked by the high of the 4th of July.

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.

Copyright 2018 JFD Brokers Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT