The Final Mexican GDP for the second quarter is predicted to rise by 1.0% quarterly and 3.7% annualized. Forex traders can compare this to the Mexican GDP for the first quarter, which increased by 1.0% quarterly and 3.7% annualized.
The Mexican Economic Activity Index for June is predicted to increase by 0.5% monthly and 4.1% annualized. Forex traders can compare this to the Mexican Economic Activity Index for May, which came in flat at 0.0% monthly and rose by 4.3% annualized.
The US House Price Index for June is predicted to increase by 0.2% monthly. Forex traders can compare this to the US House Price Index for May, which rose by 0.7% monthly.
The US S&P/Case-Shiller Composite 20 for June is predicted to rise by 1.20% monthly and contract by 1.30% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for May, which rose 1.00% monthly and decreased by 1.70% annualized.
US Consumer Confidence for August is predicted at 116.0. Forex traders can compare this to US Consumer Confidence for July, reported at 117.0. Given today’s light economic calendar, this report could move the US Dollar and dictate price action for the rest of the session.
US JOLTS Job Openings for July are predicted at 9.465M. Forex traders can compare this to US JOLTS Job Openings for June, reported at 9.582M.
The US Dallas Fed Manufacturing Activity Index for August is predicted at 6.8. Forex traders can compare this to the US Dallas Fed Manufacturing Activity Index for July, reported at 12.9. The Texas Services Sector Outlook for August is predicted at -6.1. Forex traders can compare this to the Texas Services Sector Outlook for July, reported at -4.2.
The forecast for the USD/MXN remains bearish despite heavy selling in this currency pair over the past fourteen months, which guided price action to 2015 lows. The descending Ichimoku Kinko Hyo Cloud provides ongoing downside momentum, reinforced by a fresh bearish crossover. Adding to selling pressure is the bearish crossover of the downward-shifting Tenkan-sen below the flat Kijun-sen. Traders should also monitor the CCI after it recorded a lower low in extreme oversold territory. This technical indicator began moving higher, and a false breakout could precede a fresh move lower. Can bears maintain control over the USD/MXN and force price action into its horizontal support area and fresh multi-year lows? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/MXN remain inside the or breakdown below the 16.6850 to 16.8250 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 16.7525
- Take Profit Zone: 15.9325 – 16.2550
- Stop Loss Level: 16.9550
Should price action for the USD/MXN breakout above 16.8250 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 16.9550
- Take Profit Zone: 17.0950 – 17.1300
- Stop Loss Level: 16.8250
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