has broken away from many other major currency pairs and actually been able to trigger its long-term bearish trend again.
Yes, the past few weeks have seen many major currencies struggle against the USD, and the Mexican Peso was no different when it hit a high of 18.00000 on last Tuesday. However, while most other currency pairs have remained in the upper realms of their near-term charts, the USD/MXN has resumed a downward climb.Traders must remember that volumes in Forex today will be extremely light because many European nations and the U.S. are on holiday.
The vote still has to take place in Washington this Wednesday, but the belief is the compromise will be passed. If this happens and financial institutions are less worried about a debt crisis it could cause a bit of selling in the USD.While fear of a debt crisis in the U.S. may vanish, concerns remain about the U.S. Federal Reserve remaining hawkish.
The long-term bearish trend of the USD/MXN is not a one-way avenue for day traders, who must use risk management to protect their positions against natural reversals in Forex.