Forex Market: USD/MXN daily trading forecast

Yesterday’s trade saw USD/MXN within the range of 13.0800-13.1460. The pair closed at 13.1105, losing 0.19% on a daily basis.

At 7:29 GMT today USD/MXN was up 0.06% for the day to trade at 13.1104. The pair touched a daily high at 13.1152 during early Asian trade.

Fundamental view

United States

At 14:00 GMT Federal Reserve Chair Janet Yellen is expected to take a statement at the Jackson Hole Economic Policy Symposium. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3rd 2014 for a four-year mandate ending on February 3rd 2018.

The greenback received massive support against its major peers, following the release of the minutes from Feds most recent meeting on policy on Wednesday. The minutes revealed that US labor market is improving at a faster than projected pace, while these better labor market conditions could lead to a sooner than expected increase in the Fed cash rate.

Mexico

The rate of unemployment in Mexico probably climbed to 5.0% during July, according to the median forecast by experts. In June the rate was 4.8% and in May – 4.92%, which has been the highest rate since January. It represents the percentage of the eligible work force that is unemployed, but is actively seeking employment. The rate of unemployment also reflects overall economic state in the country, as there is a strong correlation between consumer spending levels and labor market conditions. High rates of unemployment are accompanied by weaker spending, which causes an adverse effect on corporate profits and also leads to overall growth deceleration. Therefore, in case the rate of unemployment rose more than expected, this would have a bearish effect on the local currency. Instituto Nacional de Estadística y Geografía is to announce the official rate at 13:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 13.1122. In case USD/MXN manages to breach the first resistance level at 13.1443, it will probably continue up to test 13.1782. In case the second key resistance is broken, the pair will probably attempt to advance to 13.2103.

If USD/MXN manages to breach the first key support at 13.0781, it will probably continue to slide and test 13.0462. With this second key support broken, the movement to the downside will probably continue to 13.0123.

The mid-Pivot levels for today are as follows: M1 – 13.0293, M2 – 13.0623, M3 – 13.0953, M4 – 13.1283, M5 – 13.1613, M6 – 13.1943.

In weekly terms, the central pivot point is at 13.0847. The three key resistance levels are as follows: R1 – 13.1361, R2 – 13.2036, R3 – 13.2550. The three key support levels are: S1 – 13.0172, S2 – 12.9658, S3 – 12.8983.