Rebounded above 100 hour MA
The USDMXN has been corrected lower as they have been moved off the Trump Front Page for now (and survived the rough waters).
The move lower took the price "close" to the 100 day MA (at 20.18094). I can't say it was a strong test, but it was "close" (the low reached 20.27934). The move also took the price below the 38.2% at 20.54571.
The rally back higher over the last few days has seen the price push back above the 38.2% level at 20.5457 once again. That is bullish. The 38.2% is now support.
Drilling down to the hourly chart, the price has also moved above the 100 hour MA (currently at 20.5458- bullish) That level is right on the 38.2 level from the daily chart at 20.5457. Having both at the same level increases that levels importance as a risk defining level. Stay above is more bullish.
On the topside, the high today stalled against the 200 hour MA (green line) at 20.73718 level. Needless to say, if the correction was enough, a break of that MA line will be a bullish clue for longs.
Overall, the breaking back above the 38.2%, and breaking back above the 100 hour MA is bullish. Having each of those at the same level is a bonus. Staying above is what buyers want to see (that is risk).
The holding of the 200 hour MA above is a concern and does pour some cold water on the bulls hopes, but it increases the levels importance as well. If the support can hold, a move/break above should solicit more momentum and more buying.
Buyers are re-wrestling some control. They have taken the first steps in the upward direction, but have a little more work to help the trade idea. Get above the 200 hour MA and the door opens for further gains.