Search ForexCrunch

Today’s free forex signals service is a buy on the USD/MXN as we expect the market to observe dollar gains in the wake of positive US retail sales.

The USD/MXN exchange rate has been below the 19.90000 mark since September 3 and has been in an extremely tight range since that time. Likewise, the USD/MXN pair shows a high level of support as 19.84000 remains the site of several higher reversals. Therefore, market participants who distrust the USD/MXN consolidated range have good reason to be alarmed.

Staying below the key psychological level of 20.0000 may be a bearish sign, but the 19.84000 level remains a fairly strong support level, which has been consistently reliable over time. Thus, a sudden test of 19.80000 and consistent readings below that level may indicate a significant downward movement.

The US industrial production data on Wednesday fell short of expectations, while import and export prices fell short as well.

These numbers will make next week’s meeting easier, combined with this week’s inflation report.

Empire’s survey of commodity prices and price subcomponents suggests that inflationary pressures are not yet over.

In light of retail prices, the Fed will need to adjust its response function, although, after the surprise drop in the core CPI, it may be too early for the Fed to change its stance at next week’s FOMC meeting.

Until the FOMC meeting next week, news flow and domestic data may provide some direction for the dollar, but spreads against major foreign exchange markets will likely persist.

A two-day meeting of the Federal Open Market Committee (FOMC) on monetary policy, ending on September 22, may clarify the prospects for both narrowing and raising interest rates.

The dollar appreciates during a price decline because it indicates the Fed is getting closer to tightening monetary policy.

If you are looking for a good MT4 forex broker to test out some of our signals, then check out our guide.

Free forex signals – Buy USD/MXN at 19.935

USD/MXN free forex signals

Instrument: USD/MXN
Order Type: BUY STOP
Entry price: 19.935
Stop Loss: 19.833
TP1: 20.088

Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.5

Looking to trade forex now? Invest at eToro!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.