Forex Market: EUR/MXN daily forecast

During yesterday’s trading session EUR/MXN traded within the range of 18.019-18.137 and closed at 18.059.

At 7:08 GMT today EUR/MXN was adding 0.12% for the day to trade at 18.074. The pair touched a daily high at 18.075 at 7:05 GMT.

Fundamental view

At 08:00 GMT, the Ifo Institute for Economic Research will publish its IFO Business Climate Index for Germany, the largest economy in the euro zone. The index is expected to have slightly deteriorated to 110.4 this month, from 110.7 in March.

The index is based on a monthly survey among 7,000 respondents from companies in the manufacturing, construction, wholesale and retail sectors. Respondents give their assessments of the current business situation and their expectations for the next six months. They characterize their companies’ situation as “good”, ” satisfactory” or ” poor ” and their expectations for their business over the next six months as ” more favorable “, ” unchanged ” or ” more unfavorable ” . The balance value of the current business situation is the difference between the percentages of respondents that answered the situation is “good” and those that assess it is “bad”, while the value of the balance for future business expectations is the difference between the percentages of the responses ” more favorable ” and ” more unfavorable “. Ifo business climate index represents the average balance of the two sub-indexes, the sub-index of current conditions and the sub-index of business expectations. The composite index uses a value of 100 points as a separator between the positive and negative forecasts. The more the result gets away from 100 points, the greater the confidence of the respondents.

A higher than expected reading will certainly provide support to the 18-nation common currency.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/MXN manages to breach the first resistance level at 18.125, it will probably continue up to test 18.190. In case the second key resistance is broken, the pair will probably attempt to advance to 18.243.

If EUR/MXN manages to breach the first key support at 18.006, it will probably continue to slide and test 17.953. With this second key support broken, the movement to the downside will probably continue to 17.888.