The USD/MXN is trading near important resistance as speculators consider rather intriguing technical potentials.

On the 19^th of August the USD/MXN was trading near the 20.27000 ratio which essentially came within sight of resistance, with higher marks achieved in the first week of August. By the 25^th of August the USD/MXN had produced a selloff which returned the forex pair to its lower values as the mark of 19.85000 was tested.

But as speculators know, the end of last week witnessed U.S Fed Chairman Powell outline his thoughts for more interest rate hikes to come, and the USD/MXN turned higher with a relatively swift momentum. As of this morning the USD/MXN is traversing important near term resistance and is currently trading near the 20.12700 level. Technical traders are likely eyeing the 20.13500 area as a place to make a decision about potentially stronger buying to occur which could target the marks seen one week ago.

Range has been Strong and may continue to Produce Opportunities in the USD/MXN

Yes, the USD/MXN reflected the broad Forex results as the USD got stronger this past Friday. Technical traders may be inclined to believe that the USD/MXN has produced a rather intriguing price range the past few months and look at its results and wonder if the higher price momentum can be sustained. In July the USD/MXN traded momentarily above the 21.00000 level. As recently as the 2^nd of August the USD/MXN was near the 20.81000 ratio.

August’s Tranquility is Likely to become a Rather Distant Memory Soon in the USD/MXN

Nervous behavioral sentiment appears to be growing, and this week may produce additional choppy trading as financial houses brace for the end of summer and renewed questions about the global economic outlook.  Yes the price of Crude Oil within its higher price range if maintained is likely to serve as a solid anchor of value for the Mexican Peso, but questions about the U.S Federal Reserve and its interest rate will rock the boat.

• The potential for a higher move with the USD/MXN should be considered if current near term resistance around the 20.140000 is broken higher and sustained.
• Traders should be prepared for choppy conditions if technical reactions to higher moves are generated.

The USD/MXN could find itself testing a higher range from 20.20000 to 20.40000 if buying momentum flourishes in the coming days. Trading may prove to be nervous in the coming days as speculators adjust their decisions to financial houses which seek equilibrium.  Risk management will be crucial in the short term. If a trader buys on lower price action near current support around the 20.10000 mark and looks for quick hitting upside wagers they cannot be blamed short term.

USD/MXN Short Term Outlook:

Current Resistance: 20.16400

Current Support: 20.09800

High Target: 20.34000

Low Target: 19.98700

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ADA/USD is lingering near unsettling support levels, and speculators who have been trying to seek a reversal higher may be growing uneasy.

ADA/USD is hovering near the 78 cents level as of this writing, and important support levels are within sight.  The broad cryptocurrency market is showing a rather widespread amount of nervous sentiment as many of the major digital assets linger near extremely important mid-term support and many others are within shouting distance of long term junctures.

ADA/USD is remarkably close to both mid and long term support levels. If buyers remain in a non-supportive mode and the price of Cardano continues to erode, ADA/USD could with one swift stroke of volatility suddenly be next to depths it has not traversed since early February of 2021. Current support levels of 77 cents have been flirted with recently and the inability of ADA/USD to provide a solid reversal higher is troubling.

Optimistic speculators who have bought ADA/USD may still be waiting for additional buyers to step into the market, but will they arrive?  Incrementally the trend remains bearish, there is no way to sugar coat this technical viewpoint. While some traders may point to the current depths being tested by ADA/USD as a great opportunity to buy when the price is cheap, others may believe value of Cardano can drop lower.

Traders should expect volatility near term because of the consolidation many of the major cryptocurrencies are displaying near critical support levels.  The uneasy calm in digital assets is unlikely to remain and speculators should be braced for the potential of violent trading. The question day traders need to consider is where the greatest amount of risk and reward can be perceived. Because of the rather weak reversals upward, and the almost daily flirtation with lower values, negative sentiment seems to be the stronger potential impetus.

If the 78 cents ratio fails to be sustained by ADA/USD, traders could not be blamed for thinking lower depths will be explored.  If ADA/USD were to fall below the 0.77550000 mark and not be able to climb above this mark in the near term, it could set off a test of the 77 and 76 cents junctures.

Certainly there will be slight reversals higher, but the question is how much strength these moves will generate. Conservative traders may want to use slight moves upward as a way to ignite their short positions with entry price orders above current market values. Speculators need to understand that if the current quiet market disappears, ADA/USD could become very fast and having risk management ready with stop loss and take profit orders could prove effective.

Cardano Short-Term Outlook

Current Resistance: 0.78480000

Current Support: 0.77350000

High Target: 0.90780000

Low Target: 0.80100000