USDMXN Outlook & Technical Analysis for binary options
The US (Senates) passed another bill of $480 billion of relief package to support small businesses that the coronavirus outbreak has affected and for hospitals to expand coronavirus testing.
The bullish steam seems to have resumed in the last weeks of the month since the price of USDMXN failed to go lower than the previous support level.
We shall be looking at the charts for it to give us a better understanding of the binary options market and also some fundamental facts.
The outlook of Mexico’s global economic sectors for the first quarter is weakened. The GDP growth showed a decline of 0.7% annualized up from the initial estimate of a -0.8%. However, the monthly economy index grew in April.
The Mexican peso lost its ground against the dollar, while inflation held steady.
U.S. New Home Sales
The effects of coronavirus affected the sales of new homes in the US housing market. The home sales numbers for March came in at 5.27M, and it is down from its previous high of 5.76M in February.
Things are bad for the US home sales; a divergence due to the rapid rise in unemployment, credit availability will be constrained because of the larger number of defaulters will likely increase.
However, the CB consumer confidence data to be released on April 28 will give us a better picture of things. If Actual data is more significant than forecast (88.3), it is good for the economy, while the previous data was (120.0).
USDMXN Long-term Direction: Bullish Breakout
USDMXN: Technical Analysis
Monthly Resistance Levels: 25.77820, 22.03770, 19.65913
Monthly Support Levels: 17.44984, 18.53350
The bullish momentum of the USDMXN pair has been sustained by the bulls for the past three months. However, if the price of USDMXN can close above the recent high of 25.77820, the bulls’ momentum may continue as a result of the ongoing coronavirus pandemic.
Weekly Resistance Levels: 25.77820, 19.65913, 18.82790
Weekly Support Levels: 18.5225, 19.15094
The price of USDMXN pushed back up, retesting the resistance zone of 25.77820 after the initial bearish candle failed to go lower.
The Stochastic is still at the overbought zone showing weakness in the bullish momentum, and it is advisable for traders to wait for a confirmation of price action for definite action.
USDMXN Mid-Term Projections: Strong Bullish Thrust
Daily Time Frame
Daily Resistance Levels: 25.7782, 24.7841
Daily Support Levels: 19.9416, 20.2969, 22.836
For some days, the Mexican peso gained strength against the dollar pushing price down, and the sellers failed to take out the support zone of 22.836, market to establish a strong sell.
The USDMXN found support at the previous zone, and buyers rallied the price up after sporting a regular bullish divergence.
4Hour Time Frame
4Hour Resistance Levels: 25.77820, 25.44741, 24.78380
4Hour Support Levels: 22.8360
Currently, the bulls are pushing the price towards the 25.77820 marks. A general optimistic scenario is based on the candle that closes above the resistance zone.
A bearish scenario will be based on the reaction of price around the resistance level with reliable confirmations like bearish engulfing patterns or pin bars.
The US dollar remains a haven for investors, retail traders, and institutions. In this current situation that the coronavirus pandemic still ravages the world economy, a lot of resources have been pumped to the market for stability.
Key players are waiting for the price to establish its trend above or below the key levels of support and resistance.