Forex Market: EUR/MXN daily forecast

During yesterday’s trading session EUR/MXN traded within the range of 17.620-17.839 and closed at 17.774.

At 6:22 GMT today EUR/MXN was adding 0.08% for the day to trade at 17.779. The pair touched a daily high at 17.784 at 4:20 GMT.

Fundamental view

At 9:00 GMT today Eurostat is expected to report on Euro zone’s trade balance during March. The trade surplus is expected to have widened to 16.0 billion euros from 13.6 billion in February. The trade balance reflects the difference in value between exported and imported goods during the respective period. A positive figure indicates that more goods and services have been exported than imported. Export demand has a direct link to demand for the common currency and also causes an impact on levels of production. In case the surplus on Euro zone’s trade balance widened more than expected, this would provide support to the euro.

In addition, the seasonally adjusted trade balance, which is considered as a more reliable indicator, (as it excludes trend, economic fluctuations, seasonal fluctuations, calendar effects, residual or irregular fluctuations) probably expanded to a surplus of 17.3 billion euros in March, from 15 billion in the preceding month.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/MXN manages to breach the first resistance level at 17.868, it will probably continue up to test 17.963. In case the second key resistance is broken, the pair will probably attempt to advance to 18.087.

If EUR/MXN manages to breach the first key support at 17.650, it will probably continue to slide and test 17.525. With this second key support broken, the movement to the downside will probably continue to 17.431.