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As of this writing, the USD/MXN is near the 20.27000 vicinity and downward momentum in the Forex pair has grown in strength this week. Since reaching a high of approximately 20.90000 on the 12th of October, the USD/MXN has produced a significant downwards trajectory. It should be remembered on the 23rd of September the USD/MXN was trading near the 19.95000 level a little less than one month ago.
The past month of trading in the USD/MXN has been volatile and this correlates to global Forex. The USD proved strong in late September and through the mid-way point in October, but since then many major currencies have begun to get stronger against the USD, as financial institutions likely started changing their mid-term outlooks. Technically, the USD/MXN did appear to be overbought to many speculators. The ability the Forex pair has shown while reigniting selling momentum and challenging support may be creating additional contemplation.
The current price realm of the USD/MXN positions the pair near important values. If the 20.25000 to 20.20000 ratios begin to be seriously tested this could provide speculative bearish traders with the courage to pursue more selling. A low of nearly 20.15000 was touched yesterday but caused a reversal higher. Traders should be prepared for choppy conditions today.
The ratio traders may want to focus on today is resistance. If the 20.28000 to 20.31000 marks remain durable and trading is not able to puncture this resistance, it may be a signal that another round of bearish momentum will develop. Over the long term, the USD/MXN has traded below the 20.20000 vicinity for a solid amount of time, its move higher in late September and ability to climb until the middle of October could prove to be short-lived.
The short-term trend of the USD/MXN has been downward. The Forex pair remains in a highly speculative price realm, which technically can create a variety of perspectives, but if current resistance levels prove strong, traders may begin to feel confident about selling. Traders should look for quick hitting results as long at the 20.20000 to 20.30000 junctures remain in play because this is an important ground for the USD/MXN to express future direction.
Mexican Peso Short-Term Outlook
Current Resistance: 20.31400
Current Support: 20.23300
High Target: 20.37800
Low Target: 20.215000
img alt="USD/MXN" src="https:///images/placeholder.svg" data-src="https://www.dailyforex.com/files/usdmxn-21102021.jpg" title="USD/MXN"">
Source : https://www.dailyforex.com/forex-technical-analysis/2021/10/usdmxn-short-term-bearish-trend-grows-key-support-tested-october-21-2021/169704503