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USD/MXN: Has This Pair Reached Its Local Minimum?

Mar 18 2019, 05:34 PM (+06) | OlympTrade.com

 

This pair has been falling since 08.03. Are there any preconditions for the pair to move up? Let’s try to find out.

Technical features

On 1W TF the 200 -EMA and the trend line are heading up. The support level is at 19,0400.

https://tvc-invdn-com.akamaized.net/data/tvc_394d23b3c12f4fc5262e6eaf86c0e231.png

On the working daily TF, the pair tested the local support level – the trend line points at 19,2000. The Williams %R went into the oversold zone, while the MACD lines intersected, giving the signal to sell.

https://tvc-invdn-com.akamaized.net/data/tvc_2e3f218f87b9475075621fb6fa62aa53.png

Results: despite the signals to sell on daily TF the support level can be stable. The result is, it’s better to consider the pair for long positions. It is possible to open longs if the pair breaks the level 19,2900 (19,2990) up. In this case, the target will become 19,5600.,

Fundamental analysis

From the fundamental point of view, the situation for the US dollar can become worse. The key event is the FOMC meeting on Wednesday the 20th. The forecast for the meeting is that the interest rate will be left at the same level 2,5%. Consequently, the main factor that will influence the price is comments. If Powell emphasizes the pause in tightening the monetary policy, we can expect the weakening of the US dollar.

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