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USD/MXN Outlook: Profit-Taking, FOMC and More Real-Time Economic Data

It’s quite obvious the USD/MXN Exchange Rate, Forex, and FX rates will be moving up and down. The question is, how much, and how much will it move in the near term?

After analyzing the January 2020 Forex data in the U.S., it looks like there are only two scenarios for the U.S. currency. The choice could come down to one of two things.

In either scenario, I believe there will be some significant volatility in the U.S. currency going forward, as well as other currencies around the world. One, the Federal Reserve continues their rate hike path, or two, the European Central Bank offers new stimulus to their own respective nations. Of course, the European nations have yet to actually join the EMU, but I don’t think this is a necessity for joining the euro.

Forex brokers are anticipating the exchange rate to move higher, as well as lower. The question is, how much higher, and how much lower?

Forex charts show that the U.S. Dollar is having a hard time keeping pace with the curve of China’s exchange rate. It looks like China is getting more robust and “rich” as the United States dollar declines. On the other hand, it looks like the Chinese are starting to slowly make up for lost ground by pricing in less U.S. Dollars, leaving more value for Chinese citizens.

Forex brokers are anticipating the exchange rate to move higher, as well as lower. The question is, how much higher, and how much lower?

Over the past week, I have had several meetings with various members of the European Commission, and they were very keen on purchasing assets and preventing us from selling assets. They know we have the option to use our purchases of European assets to reverse the impact of current economic conditions and it also gives them a way to bypass the banks.

Forex brokers are anticipating the exchange rate to move higher, as well as lower. The question is, how much higher, and how much lower?

Speaking of the Forex markets, there is still a lot to learn about many of the strategies of the brokers, due to the learning curve. However, I can give you some insights on these brokers, in general.

As far as Forex strategies go, it is my belief that any fundamental trading strategy that is using fundamental data as a means to determine investment timing, is short-sighted. Fundamental analysis is based on forecasting.

Using empirical data that is extrapolated to a future time frame is called technical analysis. The best fundamental technical analysis trading strategy is based on price action, and the best technical trading tools are technical indicators.

When it comes to understanding what is going on in the Forex markets, there is not a better resource than Forex Mini-Course by G Gudjonsson. His comprehensive guide is an easy-to-use instructional guide to understand all the key concepts and applications of the FX markets.