USD/MXN at key level

Orlando Gutierrez Learn 2 Trade

Key Resistance: 20.50 - 20.60.

Key Support: 20.31.

Last Friday, late in NY trading the MXN started to rally hard against the USD from the the highs of the day. During that rally the USDMXN crashed 1.35% breaking with August highs in the process.

August highs are the previous broken highs after the big rally from September lows. This move is also a 61.8% pullback from last week's range.

There are 2 possible scenarios and it all depends on the USD direction or breakout today. The DXY is trading above the weekly pivot and above the 94 level. If this bullish momentum continues we could see a break above the 20.50 on the USDMXN but if USD bulls fail to bid price up a break-retest setup would be in play.

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Author

Orlando Gutierrez

Learn 2 Trade

Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.

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