USD/MXN has finally managed to develop a new leg higher. The DXY’s aggressive rally helped the USD to take full control and to dominate the currency market. The pair has found temporary resistance, but it could resume its growth anytime soon. The FOMC meeting boosted the DXY, so the greenback has rallied since yesterday night. USD/MXN has slipped lower in the last hours also because the US Unemployment Claims increased unexpectedly in the previous week. No taper tantrums after Fed policy shift hints The surprise shift in the stance of the the US Federal Reserve on both interest rates timing and inflation is boosting the dollar. The Fed has brought forward by a year – to 2023 – the first rate increase. Also, Fed chairman Jay Powell hinted strongly that there was a chance that the inflation spike may not be transitory after all. On previous occasions when the Fed has suggested a more hawkish monetary policy, it has led to market gyrations in the so called ‘taper tantrums’ of the past, when there were hints that the central bank might trim or stop its asset purchasing programme. The indicator has reported 412K jobs versus 360K expected and compared to 375K in the previous reporting period. Actually, a temporary decline was somehow expected after the most recent rally. Get Forex Signals! USD/MXN has moved down within a down channel after breaking above the downtrend line. The aggressive upside breakout from this pattern and making new highs confirmed a potential strong growth. It has found resistance above the 50% retracement level and now is traded lower at 20.4568. It could retest the 38.2% retracement level before resuming its growth. Consolidating above the 38.2% (20.3734) could bring us a new long opportunity and could validate a new bullish momentum. Also, a new higher high, jumping and closing above 20.6214 could activate more gains towards the 61.8% (20.8550) retracement level. The outlook is bullish, so the current drop could help us to catch a new upwards movement. Get Free Forex Signals – 82% Win Rate! Get Forex Signals! 3 Free Forex Signals Every Week – Full Technical Analysis 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 Daily LookForex News Today: Daily Trading NewsUS Dollar Forecast share Read Next EUR/USD breaks under 1.1900, as the US dollar rises further FX Street 2 years USD/MXN has finally managed to develop a new leg higher. The DXY's aggressive rally helped the USD to take full control and to dominate the currency market. The pair has found temporary resistance, but it could resume its growth anytime soon. The FOMC meeting boosted the DXY, so the greenback has rallied since yesterday night. USD/MXN has slipped lower in the last hours also because the US Unemployment Claims increased unexpectedly in the previous week. No taper tantrums after Fed policy shift hints The surprise shift in the stance of the the US Federal Reserve on both interest rates… Regulated 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.