Forex Market: USD/MXN daily trading forecast

Yesterday’s trade saw USD/MXN within the range of 14.4422-14.6037. The pair closed at 14.5765, gaining 0.08% on a daily basis.

At 8:48 GMT today USD/MXN was up 0.09% for the day to trade at 14.5938. The pair touched a daily high at 14.5960.

Fundamentals

Mexico

Unemployment rate

The rate of unemployment in Mexico probably fell to 4.6% during November, according to the median forecast by experts, from 4.78% in October and 5.08% in September. If so, this would be the lowest jobless rate since December 2013, when it was reported at 4.25%. 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. Low rates of unemployment are accompanied by stronger spending, which causes a favorable effect on corporate profits and also leads to overall growth acceleration. Therefore, in case the rate of unemployment decreased more than expected, this would have a bullish effect on the local currency. Instituto Nacional de Estadística y Geografía is to announce the official rate at 14:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 14.5408. In case USD/MXN manages to breach the first resistance level at 14.6394, it will probably continue up to test 14.7023. In case the second key resistance is broken, the pair will probably attempt to advance to 14.8009.

If USD/MXN manages to breach the first key support at 14.4779, it will probably continue to slide and test 14.3793. With this second key support broken, the movement to the downside will probably continue to 14.3164.

The mid-Pivot levels for today are as follows: M1 – 14.3479, M2 – 14.4286, M3 – 14.5094, M4 – 14.5901, M5 – 14.6709, M6 – 14.7516.

In weekly terms, the central pivot point is at 14.6630. The three key resistance levels are as follows: R1 – 15.0400, R2 – 15.3192, R3 – 15.6962. The three key support levels are: S1 – 14.3838, S2 – 14.0068, S3 – 13.7276.