Forex Market: USD/MXN daily forecast

During yesterday’s trading session USD/MXN traded within the range of 12.9471-13.0493 and closed at 12.9594.

At 7:24 GMT today USD/MXN was gaining 0.15% for the day to trade at 12.9732. The pair touched a daily high at 12.9750 at 7:25 GMT.

Fundamental view

United States

Today (July 4th) is the Independence Day federal holiday in the United States, which commemorates the adoption of the Declaration of Independence on July 4th 1776, declaring independence from the Kingdom of Great Britain (at present the United Kingdom). Markets in the country are to remain closed.

Mexico

Consumer confidence in Mexico probably improved in June, with the corresponding index coming in at 91.2 from 90.7 in the prior month. The survey on consumer confidence belongs to the group of economic indicators, which measure financial confidence among consumers. The more confidence in economic conditions consumers have, the more inclined they will be to spend money, which in turn stimulates the economy. Better than projected survey results usually signal that optimism among consumers has strengthened, while this may lead to higher spending in the country. Better results tend to provide support to the national currency. Mexicos Instituto Nacional de Estadística y Geografía (INEGI) is to release the official reading at 13:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case USD/MXN manages to breach the first resistance level at 13.0235, it will probably continue up to test 13.0875. In case the second key resistance is broken, the pair will probably attempt to advance to 13.1256.

If USD/MXN manages to breach the first key support at 12.9211, it will probably continue to slide and test 12.8831. With this second key support broken, the movement to the downside will probably continue to 12.8190.