USDMXN trades above and below the 200 hour MA
The USDMXN has moved a little lower as the Trump inauguration gets one day closer. Mexico has been a focus of the President elect. Last week, the pair moved to record highs peaking at 22.03206 on Wednesday. The pair has pulled back with the general USD weakness.
Today the pair opened near the 100 hour MA (blue line in the chart above and bottomed at the 38.2% of the move up from the Dec 30 low. That level comes in at 21.4725. The low on Friday dipped below that line at the close of the day, but rebounded on Monday.
The price has been trading above and below the 200 hour MA (green line).
With support defined at the 38.2% level and the 100 hour MA (and trend line) eyed above, there are close levels to watch for bullish or bearish clues. However, understand that there are trading risks not just tied to what Trump might say and do.
Yesterday Banxico Deputy bank Governor, said that intervention remains in the central banks toolkit. That can create additional volatility and fear in the market as the two sides jockey for position.
Trump lamented about the high dollar in a WSJ article saying he favors a lower dollar
