🌟👍Technical outlook:
USDMXN bearish scenario:
In this pair we have technical figure Triangle. The Triangle has broken through the support line at 19/11/2020. Forming a bearish formation on a 4 hours chart. If price holds below this level we will have possible bearish price movement with forecast for the next day with target 19.82664. Our stop loss order should be placed at 20.4340 if we decide to enter this position.
💁♀️🦸♂️Fundamentals:
- At BBVA, economists think the Bank of Mexico will keep making rate cut in 25bp steps from here until the policy rate reaches 3.0%, in May 2021. “We continue to expect that Banxico will slash rates further than currently expected, as Banxico keeps them close to 0% in real terms.”
- This suggests conservatism for Banxico going forward in order to preserve credibility and maintain yield-support for MXN
USDMXN bearish scenario:
In this pair we have technical figure Triangle. The Triangle has broken through the support line at 19/11/2020. Forming a bearish formation on a 4 hours chart. If price holds below this level we will have possible bearish price movement with forecast for the next day with target 19.82664. Our stop loss order should be placed at 20.4340 if we decide to enter this position.
💁♀️🦸♂️Fundamentals:
- At BBVA, economists think the Bank of Mexico will keep making rate cut in 25bp steps from here until the policy rate reaches 3.0%, in May 2021. “We continue to expect that Banxico will slash rates further than currently expected, as Banxico keeps them close to 0% in real terms.”
- This suggests conservatism for Banxico going forward in order to preserve credibility and maintain yield-support for MXN