Forex Marketz Daily Forex News – Fully Markets Update
USD/MXN (16.693)
Emerging market (EM) currencies remain somewhat of a bafflement. Over the last few weeks, Ems have remained stuck between positive and negative sentiment being shown to the equity markets. They are also mixed against a rather strong US Dollar. The Dollar is strong against all other G10 currencies right now. With other currencies like the USD/ZAR or the USD/PLN, the strong Dollar is winning. However with currency pairs like the USD/KRW and USD/BRL, the pro-risk tone is very heavy. Then there is the USD/MXN, which is stuck in the middle. Stuck trading between the September highs and lows at 17.34 and 16.365.
Technical Analysis
Let’s talk about the technical analysis for the USD/MXN right now. There is no clarity of price direction. The reversal, in September from 17.34 was critical from a timing viewpoint. It opened the door to a perspective corrective phase. However, there has been no confirmation and the burden remains on the bears to gain momentum as this down move has been far from impressive. Technically speaking, the promising double-top formation has now become an equally promising bullish formation as this Forex market has entered a consolidative mode. In order to get excited for a bearish correction, we need a daily close below 16.365. Keep in mind that the USD/MXN has tested this area three times already and failed.
The alternative USD/MXN technical analysis, should the Dollar recover, this supporting this Forex market, notes a key technical resistance level lining up at 17.34. A daily close above this level invalidates a key corrective cyclical relationship. It would mean a move high is asserting itself. With the year-end approaching, this lack of direction should work itself out before 2016. The USD/MXN will be forced to clarify its direction at some point.
