The 50 basis point rate hike by the Bank of Mexico was in line with expectations, especially after the Mexican president inadvertently disclosed it this morning.
Nonetheless, USDMXN is trading at new lows for the day. So at least the market spared a little reaction it seems.
Looking at the daily chart, USDMXN is moving below recent swing lows dating back to October 26th at 20.161. Today’s move lower also eliminated February lows at 20.1545, and yesterday’s low which tested this February low (low reached just below this level ) at 20.1529 (see the red numbered circles in the chart below). The 20.1545 level will now be near resistance for traders looking for more downside. Stay below and the bears maintain full control
Moving down the hourly chart, MXN has been trending lower since falling below its 100 hourly moving average on March 9, the pair has traded high and low below the 100 hourly moving average. 100 hours until March 15, when the price started accelerating further. on the decline.
USDMXN price has not traded above its 100 hourly moving average since the March 9 break. The current 100-hour moving average sits at 20.2882.
If price retraces above 20.1545 in the near term, traders will look to this 100 hourly moving average as the next key barometer. Staying below the dungeons appears even more in-game. Move above it and there will be a shift in the short-term trading bias.