The USD/MXN pair is trading in a tight range during the European session on Thursday and posts slight gains around 17.10, after reversing from the two-week low hit the day before.
USD/MXN fell to the lowest levels in a fortnight prior to the reversal at 17.05 on Wednesday, but was unable to offer any decisive close and so drew an indecision Doji candle on the daily chart. It joins the bearish pause in the options market to underpin the latest rebound in the USD/MXN pair.
USD/MXN daily chart
Trend: Limited recovery expected
That being said, the USD/MXN one-month Risk Reversal (RR), a measure of the spread between bid and ask prices, posted the first daily gain at six while marking 0.003 at the end of the session American on Wednesday.
However, it is worth noting that the weekly RR continues to show the strongest bearish bias in five weeks and therefore suggests limited space for sellers of the Mexican peso.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
