Corrects 38.2 of the moves higher
As a Trump win became more and more likely on Election day, the USDMXN raced higher. It was one way for a while. Then there was a pretty healthy correction (from 20.7648 to 19.69004). That correction found support near the 38.2% retracement at 19.76198.
The next surge happened yesterday and again today. That move took the price to a new all-time high of 21.3726. We have see another correction and are so far seeing buyers leaning against the prior high AND the 38.2% of the last leg higher at the 20.7300 area. The price just bottomed again near that level.
The bullish track is trying to hold on, but the support area at 20.7300 area is a key area that if it gives way, it should tumble lower.
THis pair is obviously not for the faint of heart. It is important to understand what you are getting in and the risks associated with it. I would be very cautious taking a position into the weekend as weekend event risk could send the price gapping higher or lower.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.