USDMXN set for a rebound! just not yet!
Updated
This is my personal take on the upcoming rebound of the MXN peso.
The past few weeks, We have seen how key resistances have failed to stall the dramatic gains of the mexican pesos vs the dollar of over 30%.
By closing on the 17.26 -17.29 mark it will trigger a key important level of support, which could propell the exchange to hit the highest mark since March 2023.
In this case we have two scenarios
A] The rebound at 17.26-17.29 is weak and fails to hit passed the 18.36 resistance level.
Signaling a continuation of the bear market.
B] The rebound passes the 18.37 resistance level. Signaling a second time for a reversal of the bear market.
However the likelyhood of pattern to test a slightly higher price level is absolute.
On the otther hand, if the 17.25 level is broken, the MXN peso is set to be one of the best performing currencies for the rest of the year. Looking to touch new lows such as 14 or even 12 MXN per USD levels and to see the Peso maintain around the 13 - 15 price level for the rest of the year. Levels not seen never since 2014 - 2015 respectively.
The rate will probably leave Mexico hurting economically as the governent will need to step in to ease the high exchange rate which will leave Mexico uncompetitive and increase inflation to new highs. The 2024 will see the Mexican peso trying to regain the 17-18 mark with mix results.
This should secure the MXN as one of the best mid and long term in FX markets.
The past few weeks, We have seen how key resistances have failed to stall the dramatic gains of the mexican pesos vs the dollar of over 30%.
By closing on the 17.26 -17.29 mark it will trigger a key important level of support, which could propell the exchange to hit the highest mark since March 2023.
In this case we have two scenarios
A] The rebound at 17.26-17.29 is weak and fails to hit passed the 18.36 resistance level.
Signaling a continuation of the bear market.
B] The rebound passes the 18.37 resistance level. Signaling a second time for a reversal of the bear market.
However the likelyhood of pattern to test a slightly higher price level is absolute.
On the otther hand, if the 17.25 level is broken, the MXN peso is set to be one of the best performing currencies for the rest of the year. Looking to touch new lows such as 14 or even 12 MXN per USD levels and to see the Peso maintain around the 13 - 15 price level for the rest of the year. Levels not seen never since 2014 - 2015 respectively.
The rate will probably leave Mexico hurting economically as the governent will need to step in to ease the high exchange rate which will leave Mexico uncompetitive and increase inflation to new highs. The 2024 will see the Mexican peso trying to regain the 17-18 mark with mix results.
This should secure the MXN as one of the best mid and long term in FX markets.
Note
#USDMXN
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.