USDMXN: Consolidates Close to Yearly Highs
USDMXN adds 0.18% at 20.0992 as bulls are in full control close to yearly highs. The Bank of Mexico cut interest rates for the first time since 2014 by 25 basis points to 8%. I believe that Banxico will continue in that direction with two more rate cuts before the year end.
On the technical side positive momentum is intact, as USDMXN trades above all major daily moving averages and above the 50 and 100 hour moving averages. On the upside first resistance stands 20,1385 today’s high and then at 20.2573 the yearly high. Extra offers will emerge at the 20.61 the high from November 226th 2018. On the downside immediate support for the pair stands at 20.0365 today’s low and then at 19.3692 the 200 day moving average; Long positions sit comfortably as long as the pair holds above 20.00.