The USDMXN is trading above 17.15 and remaining positive, nearing the weekly high of 17.1549.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/MXN holds positive ground above 17.15, close to the weekly high.

The pair currently trades last at 17.1549.

The previous day high was 17.1684 while the previous day low was 17.0329. The daily 38.2% Fib levels comes at 17.0847, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1167, expected to provide support.

USD/MXN gains momentum above the 17.00 area amid the firmer US dollar (USD) broadly. The FOMC Minutes suggest the possibility of a further tightening cycle from the Federal Reserve (Fed), and it boosts the Greenback to the highest level since June, above 103.50. The pair currently trades near 17.1730, up 0.22% on the day.

That said, the Mexican Peso weakened against the US Dollar following the release of FOMC Minutes. The report emphasised that inflation remained unacceptably high. Additionally, the Fed official saw significant inflationary risks, and it may need additional tightening of monetary policy to bring inflation to the longer-run target. This, in turn, weighs on the Mexican Peso and acts as a tailwind for the USD/MXN.

Furthermore, the upbeat US data is another driver for the Dollar strengthen. US Industrial Production rose 1.0% in July, better than market expectations of 0.3% and a prior decrease of 0.8%. In July, Building Permits increased from 1.44 million to 1.44 million, while Housing Starts increased from 1.39 million in June to 1.45 million, above expectations of 1.48 million. Both the Change in Building Permits and the Change in Housing Starts exceeded both market expectations and prior readings.

Moving on, traders will keep an eye on the US weekly Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey for August, due later in the day. Also, the Mexican Retail Sales data for June will be released on Friday. The annual Retail Sales data is expected to rise by 2.9%, while the monthly figure is expected to grow by 0.9%. The data will be critical for determining a clear movement for the USD/MXN.

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.1632 at the time of writing. Pair opened at 17.1348 and is trading with a change of 0.17 % .

The pair is trading above its 20 Daily moving average @ 16.9912, above its 50 Daily moving average @ 17.0384 , below its 100 Daily moving average @ 17.45 and below its 200 Daily moving average @ 18.214

The previous day high was 17.1684 while the previous day low was 17.0329. The daily 38.2% Fib levels comes at 17.0847, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1167, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 17.0557, 16.9766, 16.9202
• Pivot resistance is noted at 17.1912, 17.2476, 17.3267

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group