Deputy Governor Heath of Mexico Central Bank asserts that

  • The Bank will take necessary measures to bring inflation to its 3% target.
  • Guidance is to hold the rate at 11.25% for a prolonged period.

Looking at the USDMXN, it has been trending lower until reaching a bottom on Friday of last week. This week has seen up-and-down correction. That has allowed the 100/200 hour MAs to catch up to the price. The pair has been trading above and below those MAs over the last 2-3 trading days.

The current price is just above the 200-hour MA at 17.16305 (at 17.1644). Stay above that MA and the lower 100-hour MA at 17.1314 gives the buyers some hope. Move below those levels and the sellers are back in full control.

There is room to roam higher. The high from yesterday and June 15 comes in around the 17.2517 area (see red numbered circles on the chart below). Getting above that level, and it opens the door for more upside potential with the 38.2% of the move down from the May 23 high at 17.3942 as a target (see chart below).

Move below the 100-hour MA, and the sellers will likely push to new lows in the pair.