Latest News

USD/MXN: Long-Term Support Levels Tested as Selling Builds – 08 November 2022

The USD/MXN maintained its selling posture yesterday, and the currency pair is trading near long-term lows with some speculators likely worrying about potential reversals.


As of this morning the USD/MXN is trading near the 19.46250 ratio, while the currency pair has remained locked within a strong selling environment. The USD/MXN is trading near lows seen in May of 2022 when the price of Crude Oil was surging over 100.00 USD per barrel, and crucially the USD/MXN is also slightly above values last sincerely tested in 2020.

USD/MXN Getting a Boost from Selling the Dollar Sentiment

The USD/MXN has broken through key support levels in the past couple of weeks, as the price of Crude Oil has escalated again and importantly as global financial houses seem to have started flirting with the notion the USD has been overbought. The price action of the USD/MXN has mirrored other major currency pairs in the past couple of days as the USD has lost ground. The combination of higher energy prices and USD weakness has created strong selling of the USD/MXN.

Speculators may be Fearful of Reversals as they compare Risk vs. Reward

Current support levels should be watched carefully by traders around the 19.44000 ratio. If the USD/MXN were to break below the 19.44000 and 19.43000 levels, this could ignite a strong reaction in financial houses which may have their trading system geared for potential short term buying around these values. It is possible a temporary higher reversal could occur technically based on the notion these prices are long term support ratios not seen since 2020 via computerized trading systems.

The solid selling of the USD/MXN is now near crucial support, if the price of the currency pair is sustained near its current levels, a test of lower depths could develop.A question of risk vs. reward needs to be contemplated. How much lower can the USD/MXN trade compared to reversals higher in the near term?

Is the current pace of selling in the USD/MXN going to continue or is value equilibrium about to be found which will create a new stable price range? Speculators will certainly want to be careful with the USD/MXN and question its ability to move much lower. However, it should be remembered the USD/MXN has comfortably traded below the 19.00000 only a few years ago.

Traders also should note, that the U.S mid-term election may affect behavioral sentiment the next couple of days as financial houses react to the results. Forex including the USD/MXN will likely see some choppiness in the near term, but speculators who are looking for strong reversals higher in the currency pair should be cautious, because the trend remains bearish.

USD/MXN Short Term Outlook:

Current Resistance: 19.49900

Current Support: 19.43400

High Target: 19.56100

Low Target: 19.38800

Ready to trade our Forex forecast? Here’s a list of some of the best Forex trading platforms to check out.

What's your reaction?

In Love
Not Sure

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *