Look for buyers

In Mexico, there is a new government, no NAFTA news. Sure there is anxiety for sure about trade and the future with the US, but the US/Mexico is in a limbo period. That has helped the MXN.

Technically,the price has moved sharply down from the June high at 20.9569. The low today reached 19.1823.

However, the run lower may have reached it's low (at least for now).

The pair has run into a couple of key support targets:

  • The first is the 50% of the move up from the 2017 low at 19.20155
  • The second is the 100 day MA at 19.1597 (blue line in the chart above).

The low today stalled between those two levels. Buyers are leaning as risk can be defined and limited against the area.

All is ok, as long as price stays above the 100 day MA. If it breaks, I would expect more probing to the downside. Look for the buyers to stall the selling.