Skip to content
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.

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
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
Mexican Peso Forecast: Bears Lose Control as USD/MXN Threatens to Break Above Key Resistance

Mexican Peso Forecast: Bears Lose Control as USD/MXN Threatens to Break Above Key Resistance

Daniela Sabin Hathorn,

USD/MXN Technical Forecast: Neutral

Advertisement

After a crazy week in markets due to large volumes of retail traders piling to the market, USD/MXN remains stuck in its attempt to push lower and seller exhaustion is starting to creep in.

USD/MXN Weekly Chart

USD-MXN Weekly Chart

The Weekly chart shows how USD/MXN has been unable to hold below horizontal support at 19.87, highlighting that the 200-week moving average has been of increased importance to keep bearish pressure from building since price initially bounced off it at the end of November.

Back in December, I highlighted the existence of three dominant trendlines in the USD/MXN Weekly chart, and current price action is using the upper trendline as an area of resistance. This past week’s high at 20.45 saw rejection at the descending trendline, enforced by the 20-week and 100-week moving averages, which are now converging. This possible bearish cross may be signaling that further selling pressure will come into the market as price has consolidated over the past few weeks.

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

USD/MXN 4-hour Chart

USD/MXN 4-Hour Chart

Looking at the 4-hour chart, there seems to be significant short-.term support at 20.20 and the formation of a rising trendline which may keep prices heading higher, although the wider descending trendline is in short range. A fall below the 20 mark may see a new round of selling pressure, but a fresh attempt to break below 19.87 is going to need increased downside momentum to keep sellers in control. The low seen on January 21st (19.54) is likely to be a strong support area before sellers target 19.14

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