USD/MXN Forecast: Bullish
USD/MXN has been on a robust uptrend for the reason that 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 attain a major break beneath 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 information revealed will probably 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 will probably be central financial institution conduct, with concentrate on financial coverage shifts and talks about tapering asset purchases. With the Fed fairly adamant on not altering a lot till 2023, we may even see the Mexican Central Financial institution (Banxico) take motion beforehand, which might permit the Peso to regain some footing towards the US Greenback.
The Each day chart is sowing sturdy overbought situations on the stochastic oscillator and MACD so we may see some corrective promoting within the subsequent few days. Thursday’s bullish momentum was rejected at 20.62, an space the place value strain was sturdy again in March, so we may 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 may 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
Observe Daniela on Twitter @HathornSabin