News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • House Financial Services Committee schedules second GameStop hearing for March 17 - BBG $GME
  • Speaker Pelosi says minimum wage increase will not be removed from House Covid bill - BBG
  • Asia-Pacific equities opened broadly lower amid a 'risk off' sentiment following a sour lead from Wall Street overnight. Rising yields and a stronger US Dollar exerted downward pressure over risk assets. https://www.dailyfx.com/forex/market_alert/2021/02/26/Dow-Jones-Falls-on-Rising-Yields-ASX-200-Nikkei-225-Tumble-.html https://t.co/3p7prANkLA
  • The Australian Dollar looks poised to outperform the haven-associated US Dollar and Japanese Yen. However, it may lose ground to the New Zealand Dollar. Key levels for AUD/USD, AUD/JPY and AUD/NZD.Get your $AUD market update from @DanielGMoss here:https://t.co/cuxRxl5WaF https://t.co/MD0ppnO7t6
  • RT @FxWestwater: $NZDUSD, $NZDJPY React as Soaring Treasury Yields Skew Market Risk Profile Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/02/26/NZDUSD-NZDJPY-React-as-Soaring-Treasury-Yields-Skew-Market-Risk-Profile.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $TNX https://t.c…
  • Biden authorized strikes on Iran-backed militant groups. Strike was in response to attacks on US, coalition forces -BBG citing DOD #CrudeOil
  • The commodity-sensitive Canadian Dollar may continue outperforming its major counterparts in the coming weeks. USD/CAD, CAD/CHF, CAD/JPY and EUR/CAD key levels to watch. Get your market update from @DanielGMoss here:https://t.co/KYdUv2lpFC https://t.co/ZZUJ4AZEhc
  • Market Snapshot: Risk aversion is deepening as Friday APAC trade gets going $NZDUSD and $AUDUSD sinking Following declines in #SP500 and #Nikkei225 futures #USD broadly higher, anti-risk Japanese #Yen as well US 10-Year Treasury rates remain higher https://t.co/gQ50vS73P0
  • RBNZ's Orr: To consider settings against types of home lending, financial stability policies can help government housing objectives -BBG
  • RBNZ's Orr: Only focused on inflation, employment targets -BBG
Mexican Peso Forecast: USD/MXN Drifts Back Above 19.90 as it Holds its Range

Mexican Peso Forecast: USD/MXN Drifts Back Above 19.90 as it Holds its Range

Daniela Sabin Hathorn, Analyst

USD/MXNFundamental Forecast: Neutral

Advertisement

I once again find myself writing to you about USD/MXN at a price level similar to where I last left off. It’s not that price hasn’t moved in these last 7 days, but it seems to be following a pattern where it converges towards the 19.87 mark towards the end of the week.

USD/MXN Daily chart

USD/MXN Chart

Fundamentally not much has changed, the virus continues to ravage through South America and Mexico is reporting new record deaths each day, with the figure reaching a peak of 1,803 on Thursday, and new infections up 22,339 on the day.

There will be some economic data for Mexico released this coming week, including retail sales and GDP, but it is likely the market will see these data points as outdated. Investors continue to look for guidance on the future of the health crisis and the economy, and the actual virus data seems to be the only thing to possibly shed a light on what may come.

Economic Calendar
Top Trading Lessons
Top Trading Lessons
Recommended by Daniela Sabin Hathorn
Top Trading Lessons
Get My Guide

Technically, USD/MXN continues to lack the bearish support needed to break below 19.50 and the bullish support to break above the 76.4% Fibonacci (20.18) leaving price action trapped between these levels. The broader risk remains tilted to the downside, but bears are vulnerable to price appreciation in the short-term. Immediate support seems to arise at the 19.60 area whilst short-term resistance can be seen at the 20.00 mark.

Support areas are becoming scarce so a fall below 19.50 could see downside momentum increase rapidly in an attempt to get back to the levels seen last March before the outbreak of the virus. The longer-term objective remains at 19.14, before heading towards the descending trendline it was trailing up until December, which now stands at 16.65.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Daniela Sabin Hathorn
Building Confidence in Trading
Get My Guide

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES