Had only one hourly bar below MA line since Election day. That is until today...

The USDMXN has cracked below the 100 and 200 hour MA, and now the 100 day MA at 20.2672 level as well. The price has run lower. Last week, the pair tested the key 100 day MA line and on one hourly bar, closed below the key MA before rebounding back higher (see hourly chart at the bottom of the screen)..

Today, the break below the key MA levels has been accompanied with a lot of selling (potential intervention? Not confirmed).

Looking at the hourly chart below, the highs seen yesterday and again today, stalled at the 100 bar MA on the 4-hour chart. That failure to get above that MA gave sellers a technical reason to sell. The fall below the 100 hour MA at 20.3826 and the 200 hour MA at 20.3480, increased the selling pressure.

What next?

The high price going back to September 26th peaked at 19.9186. The low just ticked stalled at 19.9189. Getting within 3 pips is pretty darn close. If that level is broken we should see further selling. ON the topside, watch the 50% line at 20.08736. Stay below is more bearish.

The USDMXN rallied strongly after the election victory and reached a high just before Trump took office. However, the Banco de Mexico has been raising rates to counteract the currency effect. In addition, the Trump offensive has been focused on "other" things (and putting out "other fires" perhaps).

UPDATE (thank you Bud): US treasury secretary Steven Mnuchin spoke with the Mexican Finance minister Jose Antonio. They agreed to meet in the coming weeks to discuss the countries bilateral economic agenda.

According to Mexico, Meade and Mnuchin agreed on the importance of the Mexico-US relationship and they would work together "in benefit of development of both countries"