USDMXN was under selling pressure yesterday as investors dumped USD after dovish comments from New York Fed President John Williams and despite problems the Mexican economy is facing due to downgrades of Pemex to speculative grade, or junk status. On the technical side even today the pair is adding 0.23 percent to 18.9857 the bears are in control. Immediate support for the pair stands at 18.93 the low from July 18th while more solid buying will emerge at 18.86 the low from July 8th.
On the upside first resistance stands at 19.07 the 20 day Moving Average while extra offers will emerge at the 19.1623 the 50 day moving average. Traders can hold the short positions as long as the pair is trading below the 19.00 mark, the target for take profit can be at 18.86. Long positions in USDMXN can be initiated if the pair breaks above the 19.0748 resistance targeting 19.16 with a stop loss order at 19.00.Don’t miss a beat! Follow us on Twitter.