Forex Market: USD/MXN daily forecast

During yesterday’s trading session USD/MXN traded within the range of 12.9839-13.0543 and closed at 13.0348.

At 11:06 GMT today USD/MXN was gaining 0.03% for the day to trade at 13.0343. The pair touched a daily high at 13.0465 at 9:55 GMT.

Fundamental view

Non-Farm Productivity in the US probably decreased 1.1% in the first quarter, according to the median estimate by experts. In the previous quarter, non-farm productivity rose by 1.8%.

Labor productivity determines the interaction between real output and labor time, which is needed for their production. It shows changes in the number of goods and services produced per operating hour. Although the calculations associate the production with the working hours of all people engaged in a particular sector, the study does not include the specifics of the production process, capital/equipment or other production factors. The indicator reflects the associated impacts, including technological change, capital equipment, the level of production capacity, energy and materials, organization of production, management skills and characteristics and the efforts of the workforce. It is expressed as a percentage change compared to the previous quarter.

The US Bureau of Labor Statistics is scheduled to release an official report at 12:30 GMT. A higher-than-expected reading would be considered a bullish signal for the greenback.

Technival view

According to Binary Tribune’s daily analysis, in case USD/MXN manages to breach the first resistance level at 13.0649, it will probably continue up to test 13.0947. In case the second key resistance is broken, the pair will probably attempt to advance to 13.1352.

If USD/MXN manages to breach the first key support at 12.9944, it will probably continue to slide and test 12.9539. With this second key support broken, the movement to the downside will probably continue to 12.9240.