Forex: USD/MXN in session highs, eyes on 12.9000

The Mexican peso is sharply depreciating against the greenback on Tuesday, testing the key resistance at 12.900 after better-than-expected US consumer confidence and new home sales.

In the domestic data space, the trade balance figures showed a $2.19 billion deficit for the month of January, down from December’s $552 million surplus.

At the moment, the cross is up 0.84% at 12.8780 facing the next resistance at 13.0600 (high Dec.24).
On the downside, support levels line up at 12.6215 (low Feb.25) ahead of 12.6129 (Lower Bollinger) and then 12.5555 (low Jan.17).

Feb 26, 2013

Forex Flash: EUR/USD bolstered by support at 1.3040 – RBS

The head and shoulders pattern as indicated adjacent finally reached its downside target and the market found support at 1.3040 which was the low on the 9th and 10th of January. Recall that it was this level from which the market rallied aggressively up to the annual highs at 1.3709 initially. According to Technical Strategist William Moore at RBS, “The basing of the market at 1.3040 leads us to think that we’ll see the market drift up to 1.3198 possibly even to 1.3269 before we meet any meaningful resistance again.” In the short-term however, risk surrounding Italy has to weigh on the pair in conjunction with the fundamentals.

Forex Flash: USD/JPY targets significant break – RBS

The inverse head and shoulders pattern seen recently in the USD/JPY met its target almost perfectly and failed at the previous highs from 2010 that are clustered between the 92.32/94.77 levels. The recent high was 94.77, which was conveniently the exact high in April 2010. According to William Moore, a Technical Strategist at RBS, “From a technical perspective after the extraordinary move higher we’ve witnessed positions look to be lighter and now I look to the 91.24/94.77 range for the significant break. Breaks higher from this consolidation and 97.50 becomes the target, where as breaks lower open the 61.8% retracement of this recent range at 89.56.”