Trump and Peña Nieto talk
The USDMXN is making new session lows after reports that Pres. Trump and Mexican Pres. Pena Nieto spoke for an hour on the phone today. There were no details from the conversation.
The USDMXN in the Asian Pacific session moved higher and cracked the 100 hour MA for 4-5 hours. The pair tried to push higher but failed. The move back below the 100 hour MA started the selling. That momentum continued into the NY session - perhaps helped by the weaker data.
Looking at the daily chart, the high today and yesterday stalled near the swing high from November. Staying below was more bearish (that is in addition to the failing on the break of the 100 hour MA). See chart below.
On the downside this week, the low stalled near the swing high from early December. That is now support. Also see chart below.
The yellow area in the chart below defines the trading range for now. Look for a break and run to define the next move.
