Forex Market: EUR/MXN daily forecast

During Friday’s trading session EUR/MXN traded within the range of 17.495-17.646 and closed at 17.641.

At 7:02 GMT today EUR/MXN was adding 0.03% for the day to trade at 17.645. The pair touched a daily high at 17.645 at 7:01 GMT.

Fundamental view

Euro zone

Confidence among investors in the Euro zone probably improved during the current month, with the corresponding index coming in at a reading of 13.2. In May it stood at 12.8. The index is based on results from the SENTIX survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 400 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. The value of the index is evaluated, as the number of investors projecting a surge in a given market is subtracted from the number of those projecting a drop and the resulting difference is divided by the total number of respondents. Higher than expected readings would be supportive for the euro.

The official result is expected at 8:30 GMT.

Mexico

The annualized index of consumer prices (CPI) in Mexico probably slowed down to 3.47% in May, according to the median forecast by experts, from 3.5% in April. The index measures the change in price levels of a basket of goods and services from consumer’s perspective and also reflects purchasing trends. In case the CPI rose more than projected, this would have a bullish effect on Mexican peso.

Insituto Nacional de Estadistica Y Geografia is expected to release the official report at 13:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/MXN manages to breach the first resistance level at 17.693, it will probably continue up to test 17.745. In case the second key resistance is broken, the pair will probably attempt to advance to 17.844.

If EUR/MXN manages to breach the first key support at 17.542, it will probably continue to slide and test 17.443. With this second key support broken, the movement to the downside will probably continue to 17.391.