The USD/MXN has extended its bullish momentum and traded to new highs and is challenging values not seen March of this year.
The USD/MXN achieved a high of nearly 21.65000 momentarily yesterday, which challenged values not displayed since March of this year. On October the 18th, the USD/MXN was trading near the 20.15000 ratio, but has seen a strong bullish trend materialize since then, which has correlated to the broad Forex market as the USD has strengthened against many major currencies. The USD/MXN is within sight of important long-term resistance and speculators will need to look at long-term charts to gather their perspectives.
USD/MXN traders also need to be aware the short term may prove to be choppy over the next couple of days, because US financial institutions will largely be absent from Forex because of the Thanksgiving holiday. However, the ability of the USD/MXN to trend upwards may not be about to reverse lower with a consistent effect quite yet, support levels certainly need to be watched but if they are proven durable, the pair may have the capability of finding additional upwards momentum.
The resistance level of 21.65000 should be watched carefully; yes, it is a distance away and may prove to be difficult to achieve in the short term, but if current support levels prove durable closer, resistance levels may be worthwhile targets for traders near the 21.40000 to 21.45000 ratios. Speculators need to pay attention to market conditions near term, because they may appear to be hardly moving over the next two days, but historically this is also when sudden spikes can be demonstrated because of imbalances in the market due to a lack of large trading volumes during major US holidays. Beware of spikes.
Traders may be tempted to buy the USD/MXN on reversals lower when they occur, but they should also practice patience today and tomorrow as they wait for their positions to achieve their goals. It is a good idea to have stop loss and take profit orders working at all times to protect against the threat of sudden volatility. Having achieved new highs yesterday which are now challenging March highs, the USD/MXN may have further room to climb.
Short-term targets have to have realistic expectations, meaning traders need to have goals which are not overly ambitious. Traders who expect stronger bullish moves to be achieved should be prepared for the potential of overnight positions needing to be dealt with if Forex remains rather quiet today and tomorrow for the USD/MXN.
Mexican Peso Short-Term Outlook
Current Resistance: 21.45000
Current Support: 21.31000
High Target: 21.66000
Low Target: 21.20000