In today’s comprehensive EURMXN forecast, we will first examine the current economic conditions in Mexico. Then, we will meticulously delve into the details of the EURMXN pair’s technical analysis.
Investment Trends in Mexico
Bloomberg—In August 2023, Mexico witnessed a remarkable 32% annual increase in gross fixed investment, marking the most substantial rise since the post-pandemic rebound observed in May 2021. This impressive growth outpaced the anticipated consensus of 28.5%.
Notably, construction investment experienced a noteworthy jump of 48.1%. This was primarily driven by a massive 99.5% leap in non-residential construction, which more than made up for a slight 2.7% dip in residential buildings. Furthermore, investment in machinery and equipment also showed a healthy uptick, with a 15.2% increase.
A breakdown of this growth revealed a 17.8% rise in investment for imported machinery, while investment in machinery produced within the country climbed by 11.3%. After adjusting for seasonal factors, Mexico’s gross fixed investment increased by 3.1% monthly.
EURMXN Forecast: A Technical Analysis
The latest EURMXN forecast reveals a significant bearish momentum as the currency pair dipped below the critical 18.99 pivot level. Traders and analysts closely monitor the EURMXN exchange rate after the Lorentzian classification indicator issued a selling signal. This analytical tool, coupled with the RSI indicator languishing below 50, suggests that the EURMXN pair may continue to face downward pressure, potentially reaching the S2 support level at 17.83.
Investors are advised to monitor the 19.4 resistance level closely. This level is the linchpin of the bearish scenario in the EURMXN market. A breach above this threshold would invalidate the current bearish forecast, prompting a reassessment of the EURMXN trading strategy.
As the market dynamics evolve, staying updated with the latest EURMXN forecast and technical analysis is crucial for making informed trading decisions in this volatile currency pair.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
