Today, USD/MXN made another run higher, but this time, managing to overcome the previous highest point of September, at 20.203. If we look at the current price structure from mid-September, it is of higher lows and higher highs. At the time of writing the pair is finding resistance near the high of August 30th, at 20.225. If the bulls have enough steam to overcome that obstacle, we will stay positive, at least in the near-term.
As mentioned above, if the bulls manage to keep the pair above the resistance area between the 20.203 and 20.225 levels, that may attract more buyers into the game, possibly clearing the way further north. That’s when we will target the 20.320 hurdle, marked by an intraday swing low of August 27th, where the rate might stall for a bit, or even correct back down. That said, as long as USD/MXN remains somewhere above the previously mentioned area between the 20.203 and 20.225 levels, the upside scenario could still be on the table. If the buyers take advantage of the lower rate and push it up again, the pair might be able to overcome the 20.320 obstacle, and target the next possible level, at 20.426, marked by the high of August 27th.
The RSI and the MACD are currently pointing higher. Also, the RSI remains well above 50 and the MACD continues to run above zero and its trigger line. The two oscillators show positive price momentum, which comes inline with the scenario mentioned above.
In order to shift our attention to some lower areas, a break of the short-term tentative upside support line, which is drawn from the low of September 16th, would be required. Additionally, a drop below the 20.010 hurdle, marked by the low of September 27th, could strengthen the bearish case, potentially opening the door towards lower areas. We may then target the 19.977 obstacle, or the 19.905 zone, marked by the low of September 17th. If the slide continues, the next possible target might be at 19.848, marked by the lowest point of September.
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. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD 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 analyses 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 analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.