USD/MXN Price News: Mexican Peso sellers take clues from options market, Doji candlestick near 17.10

Anil Panchal FXStreet

USD/MXN picks up bids to print mild gains around 17.10 amid early hours of Thursday’s Asian session, after reversing from a two-week low the previous day.

The Mexican Peso (MXN) pair dropped to the lowest levels in a fortnight on Wednesday before reversing from 17.05 but failed to offer any decisive closing and hence portrayed a bullish Doji candlestick on the Daily chart. The same joins the pause in the options market’s bearish bias to underpin the USD/MXN pair’s latest rebound.

USD/MXN: Daily chart

Trend: Limited recovery expected

That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, printed the first daily gain in six while marking the 0.003 figure by the end of Wednesday’s North American trading session.

It’s worth noting, however, that the weekly RR still shows the strongest bearish bias in five weeks and hence suggests limited room for the Mexican Peso sellers.

Also read: USD/MXN prolongs its downward streak despite hawkish Fed remarks

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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