USDMXN retraces to retest it 200 day moving average

The reversal in rates and the dollar helps emerging currencies

The USDMXN has been pushing higher as US interest rates increased, the dollar increased.  The pair moved above its 200 day moving average for the first time since early October on Friday, and moved to a new high going back to early November at 21.6354 during yesterday’s trade. 

The reversal in rates and the dollar helps emerging currencies_

Today with the dollar moving lower, stocks soaring and interest rates back lower, the pressure on the emerging currencies – including the MXN  – has abated a bit. 

Technically, the USDMXN as retraced back to retests it’s 200 day moving average at 21.1599. The prices just dipping below that level to 21.1466 currently.   If the price can stay below, the sellers will feel more comfortable that the break above was as short-term phenomena.   Move back above and the buyers assume more control.  

Key test.  

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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