Forex Market: USD/MXN daily forecast

During Friday’s trading session USD/MXN traded within the range of 13.0343-13.0635 and closed at 13.0519.

At 6:42 GMT today USD/MXN was gaining 0.04% for the day to trade at 13.0576. The pair touched a daily high at 13.0620 during the early phase of Asian trade.

Fundamental view

Mexico

At 13:00 GMT Insituto Nacional de Estadistica Y Geografia in Mexico will report on nations rate of unemployment during March. In the prior month the unemployment rate fell to 4.65% from 5.05% in January. This indicator measures the percentage of the overall work force, which is currently unemployed and actively looking for employment. In case the jobless rate fell more than anticipated, this would have a bullish effect on the peso.

United States

At 14:00 GMT the National Association of Realtors (NAR) will report on existing home sales in the United States during March. In February compared to January the index of existing home sales dropped 0.4% to a level of 4.6 million. The sample of data encompasses condos, co-ops and single-family houses.

Statistical data on existing home sales is often used along with statistical figures regarding the New home sales and Pending home sales, with the major objective being to draw a conclusion how nation’s housing sector is performing, regardless of interest rates. The most active house-purchasing period in the United States is usually between the months of March through June. Therefore, in case statistical data revealed a sudden drop in the number of homes sold rather than an improvement during this period, this would be considered as a signal of weakness in country’s housing market.

The report on existing home sales usually does not cause a real direct impact on US economy. Actually, this effect appears to be minimal, due to the fact that nothing is produced with the mere sale of an existing home. In terms of economic activity, the sale of an existing house may be related only to interior design and purchases of new furniture.

The reason markets pay a certain attention to existing home sales report is that it reveals much about the general course of nation’s economy. A major part of the population considers a house as a sign of wealth and, unlike the money wealth, which is concentrated in certain regions of the country and held by the wealthiest representatives of the population, ”housing wealth” is evenly distributed across the country.

In case the index increased more than anticipated, this would support the greenback.

Technical view

According to Binary Tribune’s daily analysis, in case USD/MXN manages to breach the first resistance level at 13.0656, it will probably continue up to test 13.0791. In case the second key resistance is broken, the pair will probably attempt to advance to 13.0947.

If USD/MXN manages to breach the first key support at 13.0363, it will probably continue to slide and test 13.0207. With this second key support broken, the movement to the downside will probably continue to 13.0071.