USD/MXN Drifts Again Above 19.90 because it Holds its Vary

USD/MXNFundamental Forecast: Impartial

I as soon as once more discover myself writing to you about USD/MXN at a worth stage just like the place I final left off. It’s not that worth hasn’t moved in these final 7 days, nevertheless it appears to be following a sample the place it converges in the direction of the 19.87 mark in the direction of the tip of the week.

USD/MXN Each day chart

Essentially not a lot has modified, the virus continues to ravage by way of South America and Mexico is reporting new document deaths every day, with the determine reaching a peak of 1,803 on Thursday, and new infections up 22,339 on the day.

There will likely be some financial information for Mexico launched this coming week, together with retail gross sales and GDP, however it’s seemingly the market will see these information factors as outdated. Traders proceed to search for steerage on the way forward for the well being disaster and the economic system, and the precise virus information appears to be the one factor to presumably shed a light-weight on what could come.

Technically, USD/MXN continues to lack the bearish assist wanted to interrupt under 19.50 and the bullish assist to interrupt above the 76.4% Fibonacci (20.18) leaving worth motion trapped between these ranges. The broader threat stays tilted to the draw back, however bears are susceptible to cost appreciation within the short-term. Instant assist appears to come up on the 19.60 space while short-term resistance may be seen on the 20.00 mark.

Help areas have gotten scarce so a fall under 19.50 might see draw back momentum enhance quickly in an try to get again to the degrees seen final March earlier than the outbreak of the virus. The longer-term goal stays at 19.14, earlier than heading in the direction of the descending trendline it was trailing up till December, which now stands at 16.65.

— Written by Daniela Sabin Hathorn, Market Analyst

Observe Daniela on Twitter @HathornSabin