USD/MXN Analysis Today – 05/02: Sharp Rise, Tests (Chart) – DailyForex.com

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The USD/MXN moved upwards with rapid price velocity on Friday in the wake of the solid U.S jobs numbers which took many financial institutions by surprise it appears.
USD/MXN Analysis Today - 05/02: Sharp Rise, Tests (Graph)
However, as sudden and fast as the jump upwards in the USD/MXN occurred it was actually not overdone. The high of the USD/MXN achieved on Friday hit a mark around 17.18155 which was still below ratios seen on the 1st of February. The broad Forex market also responded in a similar manner, in other words the jump higher in the USD/MXN was not exactly overdone, but simply a healthy response to nervousness created by the U.S Non-Farm Employment Change and Average Hourly Earnings reports.

Resistance Levels Tested Again in the USD/MXN

Current market prices in the USD/MXN are within sight of technical levels which have been demonstrated throughout January. The 17.20000 has been an inflection point the past month and the level has seen reversals above and below the value point. Traders who want to wager with the USD/MXN will be likely using technical charts to gauge sentiment, and market conditions in the near-term will likely be choppy.
Trading early this morning in the USD/MXN has seen a move higher, but then rather consistent price action has taken place. Short-term speculators should likely remain focused on quick hitting results instead of being overly ambitious. The U.S ISM Services PMI data will be released today, but this report is unlikely to cause a seismic event in Forex like the jobs numbers did before going into last weekend.

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USD/MXN Short and Near-Term Considerations

The ability of the USD/MXN to remain within a known price range upon the release of the solid U.S jobs numbers on Friday and stay below highs seen only a handful of days before, opens the possibility that via behavioral sentiment considerations financial institutions are still counting on a weaker USD to emerge. However the road to a USD/MXN that declines below support ratios near the 17.10000 level over the past month have proven difficult.

  • Traders should look for quick hitting targets in the USD/MXN today and not be overly speculative regarding the potential of large moves.
  • Values between the 17.11000 and 17.20000 marks should be watched in the near-term technically.

USD/MXN Short Term Outlook:

Current Resistance: 17.18300
Current Support: 17.15550
High Target: 17.19660
Low Target: 17.12600
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