August 3, 2022
  • August 3, 2022

Volatile opportunities as contested top stocks

By on September 23, 2021 0

USD / MXN is crossing a higher price range and volatility has erupted in the short term as global market conditions created nervous sentiment.

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USD / MXN is hovering above the 20.0000 junction as of this writing. A high of nearly 20.20,000 was reached on 20e September, and heated exchanges ensued. The 21st USD / MXN hit a high of around 20.15,000, then fell to a low of near 19.93,000 late last night. However, as of today, the USD / MXN peaked near 20.12,000, before declining slightly and crossing its current value.

Technically, the USD / MXN pursued a lower price point from the 1st from September to 17e. A fairly strong battle was demonstrated which saw the values ​​of 19.84000-19.96000 dominate the trade during this period. This created a fairly intriguing speculative fork to try and capitalize on by pursuing quick reversals.

However, over the past few days, significant resistance levels have shaken and penetrated higher. While technical traders may be quick to point out that the upward movement has occurred because support has proven to be adequate, it cannot be denied that global financial nervousness has also added a volatile ingredient to Forex, this which resulted in an increase in the price fluctuations of the USD / MXN.

Traders who are drawn to the potential for quick results may view the USD / MXN as an opportunity in its current price domain. If the 20.0000 market continues to hold steady as lasting support, this could prove to be a spark for traders who might believe that a further near-term rise is a possibility.

After moving in a narrow consolidated value band since early September, the USD / MXN was suddenly able to provide a strong dose of price action that saw resistance levels pushed aside as higher values ​​were challenged. Short-term traders who have bullish sentiment under current market conditions may want to target resistance nearby as a profit bet. If the 20.10000 can be challenged and trading is held above that level for an extended period, it could indicate that bullish momentum will be encountered.

The 20.00000 may turn out to be important in the short term. If this support level is held this could be seen as a bullish indicator, but if the 19.98,000 mark starts to approach it is conceivable that the 19.95,000 level will also be tested. However, if those lower marks are crossed today, speculators could see another buying opportunity based on the idea that the USD / MXN may not fall significantly below the 19.94000 ratio in the near term.

Short-term outlook for the Mexican peso:

Current Resistance: 20.08,000

Current support: 19.98000

High Target: 20.16000

Low target: 19.91000

USD / MXN