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. See our updated Privacy Policy here.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • US House Speaker Pelosi says top-line spending number may change but hopes for $3.5 trillion in spending bill - BBG
  • RBA Minutes: - Board committed to providing high level of monetary support - Q3 GDP expected to decline materially - Central scenario is rates on hold until 2024 - BBG $AUDUSD
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min)
  • New Zealand reports 14 new local Covid cases - BBG
  • I had a chance to talk with @tastytradeRyan and @victorJ0NES about Evergrande and its impact on US markets — always great talking with these two guys on Mondays.
  • RT @cheddar: Stocks dropped the most since May on Monday, sending shockwaves through Wall Street. @CVecchioFX explains the global impact of…
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here:
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here:
  • What is your forex trading style? Take the quiz and find out:
  • RBNZ's Hawkesby talking "considered steps" when setting monetary policy, leaning towards 25bps - With money markets pricing in 31bps worth of tightening at the October meeting. Room for disappointment.
Mexican Peso Weekly Forecast: USD/MXN Back Within Key Range as USD Flops

Mexican Peso Weekly Forecast: USD/MXN Back Within Key Range as USD Flops

Daniela Sabin Hathorn, Analyst

USD/MXN Forecast: Neutral


USD/MXN continues to build on its recent bearish momentum coming back into a strong support area between 19.87 and 19.67 where sellers are really going to have to battle it out to build further gains. The pair has been left pretty much at the mercy of the Dollar in recent weeks and that is why it is seeing a strong reversal in price as the USD comes off from recent highs. This dynamic in USD/MXN has been going on for a while and can be pretty evident if you overlap it with the Dollar index chart (DXY).

There is little economic data on the calendar for Mexico next week so I would expect the pair to continue to be driven by flows in the US Dollar. The Fed’s latest meeting on Wednesday was enough to convince traders about undoing some of the risk-off moves from the previous days but the bearish sentiment in the currency has already started at the beginning of the week, causing USD/MXN to pullback over 2%, the biggest move its seen in the last month.

The question now is whether this is just a temporary adjustment or if there is more to this move. If we see a follow-through we could see sellers aiming towards the lower bound of the range (19.68) although it won’t be an easy path, especially looking at the complications the pair has seen around this area over the last three months. If achieved, the next key area is likely to be 19.50 as the pair has been unable to touch this area since March 2020 despite various attempts along the way. A break below may lead to consolidation towards 2020 lows at 18.50.

Alternatively, if the US Dollar is able to regain bullish momentum then USD/MXN is likely to trade back above 20 Pesos per Dollar, with 20.08 likely to be a good test of resistance before heading towards the 76.4% Fibonacci at 20.18.

USD/MXN Daily Chart


Fibonacci Confluence on FX Pairs

--- 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.