USD/MXN Forecast Today 13/03: Dollar Tests Key 18.00 (Chart)

(MENAFN- Daily Forex) The 18 level in the USD/MXN pair is a major area that I will be watching as a potential entry region to the down side US dollar has been very strong against the Mexican peso during the trading session on Thursday as we continue to see a lot of noisy behavior frankly, when you look at this currency pair you can see that the 18 level is significant resistance and we have tested it a couple of times. If we can break above there it would obviously be a huge turn of events and possibly a trend change being said, I think that if we can break above there then I think it opens up a major risk destruction currency move and that probably has the US dollar gaining not only against the Mexican peso but against multiple other currencies around the world. Top Regulated Brokers 1 Get Started 74% of retail CFD accounts lose money Read Review BrokerGeoLists({ type: \u0027MobileTopBrokers\u0027, id: \u0027mobile-top-5\u0027, size: SidebarBrokerListAmount, getStartedText: \u0060Get Started\u0060, readReviewText: \u0060Read Review\u0060, Logo: \u0027broker_carrousel_i\u0027, Button: \u0027broker_carrousel_n\u0027, });Economic Leverage and Carry Trades EURUSD Chart by TradingView That being said, if we rally a bit and show signs of exhaustion like we have multiple times, then it could open up the possibility of shorting this pair. Keep in mind that you get the massive interest rate swap working in your favor as the carry trade would kick off yet again in mind that there is a certain amount of risk that needs to be in the market in order to take advantage of these smaller currencies, but with this being said, it\u0026rsquo;s likely to keep in mind that the Mexican economy is highly levered to the US economy. So if the US economy does fairly well, then you have a situation where the Mexican economy ends up being a big benefactor and you see a lot of strength in the Mexican peso as not only do you get paid to hold the Mexican peso but you also have the reality that more money flies into that country\u0026rsquo;ve been in a downtrend for quite some time, but the 18 level is my red line in the sand, so we\u0026rsquo;ll have to see.

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