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Usdmxnbreakout

Why the Mexican Peso Surged Against the USD? On Wednesday, the US dollar decreased in value against other major currencies, including the Mexican peso, by over 1%, due to reports of slower than expected US inflation. This suggests that the Federal Reserve may pause its interest rate hikes. According to data from the US Labor Department, inflation in April decreased to 4.9%, which is the lowest year-over-year increase in two years and lower than market forecasts of 5%. The slower inflation was attributed to slower growth in food prices and a further decrease in energy costs. However, core inflation remained high at 5.5%, indicating that interest rates may need to stay high for some time to control it. Fed funds futures traders are anticipating a pause before expected rate cuts in September, which might be a little optimistic, as the Fed's target range remains at 5% to 5.25%. The Mexican peso gained strength to 17.544, its highest value since July 2017, as the difference between US and Mexican monetary policies became more pronounced. The RSI on the USDMXN suggests it is in an extreme oversold condition, so a pullback may be necessary. Resistance levels from 2017 for the pair may no longer be relevant, but the strongest value the peso reached in 2017 was $17.430, while the peak in 2016 was $17.050. For fundamental context, Banxico increased rates to an all-time high of 11.25% in March, despite a decrease in annual headline inflation that was greater than expected. Mexico's proximity to the US has also made it an attractive location for foreign companies to open factories targeting the American market and diversifying production from China. Additionally, the US economy's robust state has led to a rise in remittances to Mexico from expats.
by BlackBull_Markets
2
USDMXN NEXT TRADE SETUP(SHORT).As you seen my last week trade setup and our last call on this pair and USDZAR as well, the market almost hit the expected target around 21.5000 area.On the weekly chart market look on a bearish momentum with a possible break of the recent lows in the near future But i should retrace back towards up to maintain its structure(support and resistance) .Price on the daily chart will probably test the daily structure before starting a bounce over it.If the price will break below the structure we will monitor the market for a nice short order.We will consider a long reversal only over the 22.0000 area. All the entries should be applied if all the rules are applied . Do comment us below for instance.
Short
by TradingSwirls
USDMXN NEXT TRADE SETUPUSD/MXN rates are testing critical near-term support, which very well could be the determining factor in the predominant trading trend through the end of the year. While other currencies are benefiting from the US Dollar’s (via the DXY Index) weakness, the reliance the Mexican economy has on the United States has left the Peso struggling relative to other global growth-sensitive currencies. At the time of publication of this analysis, USDMXN is on 22.2230 and is testing its critical support zone. We can find good sell entries if it breaks this zone and there is no fake breakout and at point 22.100 we can place our sell entries till next support at 21.49300. Entries should be placed only if all the rules of entries are applied.
Short
by TradingSwirls
USDMXN | WEEKLY FORECASTPeso follows the step of the Yuan against the Greenback! Tendency: Downtrend ( Bearish ) Structure: Breakdown | Trendline | Support & Resistance Observation: i. Price moves below support area @ 22.66000 affirms Breakdown structure with indications that the potential for the price to start trending downward is increasing. ii. Price trailing the Bullish Trendline in a bid to correct Impulse leg finally breaks Trendline at 22.66000 confirming a change in direction. iii . The second Breakdown of 22.44000 brings a level of confirmation to our bias as price nose-dives. Trading plan: SELL confirmation with a minimum potential profit of 15,000 pips. Risk/Reward: 1:3 Potential Duration: 3 to 10 days NB: This speculation can be considered to make decisions on lower timeframes. Watch this space for updates as price action is been monitored. Nirvana! Forex Risk Disclaimer: Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and NFTI takes no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior to making any investment. NFT&I does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Short
by darcsherry
2