Our USD/MXN forecast notes the pair has been dropping significantly of late as the US Dollar Index is in a temporary correction. Actually, a downside movement was in the forecast to some extent after the dollar gains seen last week. The pair could now retest a number of near-term support levels before coming returning to the upside. The pair is fighting hard to recover, not helped by US Fed chairman Jerome Powell’s dovish testimony to the US Congress yesterday and US economic data coming in mixed today. The Flash Manufacturing PMI increased from 62.1 to 62.6 points even though analysts had expected to see a decrease to 61.5 points. Also, the Flash Services PMI dropped from 70.4 to 64.8 points, far below the 70.0 mark expectations. In addition the New Home Sales indicator dropped unexpectedly from 817k to 769k for the four consecutive month of declines, when economists had been expecting to see an increase to 864K. On the other hand the Current Account data improved, and was reported at -196 billion for May versus -175 billion in the previous month, but failing to reach the -205 billion forecast. Get FREE Forex Signals Now! Mexico interest rate decision due tomorrow, 24 June In Mexico, Banxico is expected to leave interest rates unchanged at its meeting tomorrow (Thursday 24 June). Having said that, in its previous meeting the central bank of Mexico did shift from a neutral stance on inflation to one in which it determined that the risk had shifted to the upside. Nevertheless, no surprises are expected on the policy front. Interest rates are currently at 4% in Mexico. Dutch bank Rabobank sees the Mexican Peso settling in a trading range between 19.50 to 21.0 with a slightly bias in the 19.80 to 20.60 region. USD/MXN forecast: technical analysis USD/MXN is trading at 20.303 level at the time of writing and it could try to come back towards the 38.2% retracement level if the DXY was to rebound – the pressure to do so is high as long as it stays under this obstacle. The next downside targets are seen at the former downtrend line and at the ascending pitchfork’s median line (ml). The price could be attracted by the confluence area formed at the intersection between these two levels. Dropping below these levels and under the 23.6% retracement level will emphatically signal a strong drop towards the lower median line (lml). A new long opportunity could be signalled by a consolidation above the median line (ml) or by a false breakdown with great separation below the immediate support levels. Looking to trade forex now? Invest at eToro! Trade Forex Now! 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. Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Forex News Today: Daily Trading News share Read Next EUR/CHF Forecast: Euro On the Up, Attracted To The Median Line Olimpiu Tuns 5 months Our USD/MXN forecast notes the pair has been dropping significantly of late as the US Dollar Index is in a temporary correction. Actually, a downside movement was in the forecast to some extent after the dollar gains seen last week. The pair could now retest a number of near-term support levels before coming returning to the upside. The pair is fighting hard to recover, not helped by US Fed chairman Jerome Powell's dovish testimony to the US Congress yesterday and US economic data coming in mixed today. The Flash Manufacturing PMI increased from 62.1 to 62.6 points even though… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.