If Mexico won't pay for the wall, we might as well cancel the upcoming meeting.
Trump is on the twitter with comments on USDMXN and they are a bit more combative. Yesterday he was more positive about relationships with Mexico (it is in the US interests to have a strong Mexico economy), but comments from Mexican President Enrique Peña Nieto
that Mexico will not pay for the wall, has the President back on the offensive.
As a result we are seeing a rebound higher in the USDMXN.
Looking at the chart, the pair bottomed today at the 61.8% of the move up from the early December low at the 20.86106 level and found dip buyers against the support level. The price rally has taken the price back above the broken 200 bar MA on the 4 hour chart. We trade at new day session highs on the comments.
The next targets for the pair:
- 21.2024. The low from Jan 6/Jan 9
- 21.22104. The 50% of the move down from yesterday
- 21.2448-212587. The lows from Jan 23 and Jan 24th
- The 100 hour MA is up at 21.3783 and moving lower.
Support is now at 21.1183 which is the swing low from January 5th.
