Mexican Peso Weekly Forecast: USD/MXN Prices Increased

USD/MXN Forecast: Bullish

USD/MXN has been on a powerful uptrend because the US Greenback bounced again final week, helped even additional by the Fed’s hawkish feedback on Wednesday’s FOMC assembly. The pair had been struggling to realize a big break under 19.68 for the previous two months, increase bullish momentum alongside the way in which as dip-buying noticed fixed fluctuations across the 20 pesos mark.

Waiting for subsequent week, there’s a lack of financial drivers for the Mexican Peso as the one knowledge revealed shall be retail gross sales for the month of April on Wednesday. I think that USD/MXN will proceed to be decided by actions within the US Greenback, which appears barely overstretched and could also be coming off within the subsequent few days.

A key focus going ahead shall be central financial institution habits, with give attention to financial coverage shifts and talks about tapering asset purchases. With the Fed fairly adamant on not altering a lot till 2023, we might even see the Mexican Central Financial institution (Banxico) take motion beforehand, which might enable the Peso to regain some footing in opposition to the US Greenback.

USD/MXN Ranges

The Each day chart is sowing robust overbought circumstances on the stochastic oscillator and MACD so we might see some corrective promoting within the subsequent few days. Thursday’s bullish momentum was rejected at 20.62, an space the place worth strain was robust again in March, so we might even see additional resistance alongside this space if USD/MXN manages to consolidate above 20.50. If that’s the case, there aren’t many ranges of reference till 20.94, so we might see a renewed bullish break heading into this week.

USD/MXN Each day Chart

Fibonacci Confluence on FX Pairs

— Written by Daniela Sabin Hathorn, Market Analyst

Comply with Daniela on Twitter @HathornSabin