USD/MXNTechnical Forecast: Bearish

The Mexican Peso has loved one other good week in opposition to the US Dollar after corrective strain noticed USD/MXN commerce greater after the announcement of the Pfizer vaccine. The pair is now positioned once more simply above the 76.4% Fibonacci retracement stage from the 18.55 – 25.46 surge, a key space sellers might want to break under as a way to consolidate additional draw back momentum.

USD/MXN Each day chart (11 February – 20 November 2020)

Given risk-on sentiment was halted initially of November simply above the 20.00 pesos mark, a sustained break under this stage is prone to entice extra sellers. The query now’s whether or not the Mexican Peso is ready to take pleasure in a number of days of relative energy with out dealing with a robust upward reversal. In conditions like current, the place information headline spark fast strikes, we’re prone to see elevated profit-taking on speculative positions, which could possibly be the motive behind a doable value reversal if we do in actual fact…