Forex Market: USD/MXN daily trading forecast

Friday’s trade saw USD/MXN within the range of 14.6042-14.7382. The pair closed at 14.6530, gaining 0.15% on a daily basis.

At 9:02 GMT today USD/MXN was up 0.28% for the day to trade at 14.6899. The pair touched a daily high at 14.6957 during early Asian trade.

Fundamentals

Mexico

Retail sales

Mexican index of retail sales probably rose at an annualized rate of 3.8% in November, according to the median forecast by analysts. In October the index of sales climbed 5.6% year-on-year, or the highest rate of increase since June 2012. Monthly retail sales probably increased 0.3% in November, following a 0.1% drop in the prior month.

Retail sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the primary indicator for consumer spending, which itself accounts for a greater part of the nations economic activity. Therefore, higher retail sales suggest accelerating economic activity, which is generally seen as having a bullish effect on the local currency. Lower retail sales, on the other hand, suggest that the economy is cooling, which is, in general, bearish for the peso. Mexicos National Institute of Statistics and Geography (Instituto Nacional de Estadística y Geografía) will release its report on retail sales at 14:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 14.6651. In case USD/MXN manages to breach the first resistance level at 14.7261, it will probably continue up to test 14.7991. In case the second key resistance is broken, the pair will probably attempt to advance to 14.8601.

If USD/MXN manages to breach the first key support at 14.5921, it will probably continue to slide and test 14.5311. With this second key support broken, the movement to the downside will probably continue to 14.4581.

The mid-Pivot levels for today are as follows: M1 – 14.4946, M2 – 14.5616, M3 – 14.6286, M4 – 14.6956, M5 – 14.7626, M6 – 14.8296.

In weekly terms, the central pivot point is at 14.6747. The three key resistance levels are as follows: R1 – 14.7748, R2 – 14.8965, R3 – 14.9966. The three key support levels are: S1 – 14.5530, S2 – 14.4529, S3 – 14.3312.