USDMXN: Consolidation at Recent Highs
USDMXN consolidates today around recent highs at 19,5563 as investors continues to dump emerging market currencies amid escalation in US – China trade tensions. The United States MBA Mortgage Applications climbed from previous -1.4% to 5.3% in August 2 gave USD extra strength.
On the technical side the bulls are in control at least for the short term. Immediate support for the pair stands at 19.3720 the 50 day moving average while more solid buying will emerge at 19.1167 the 100 day moving average. On the upside first resistance stands at 19.7345 yesterday’s high while extra offers will emerge at the 19.7820 the high from June 7th. Possible long positions in USDMXN can be initiated targeting 19.70 zone with a stop loss order at 19.37. Bears have to wait for a break below 19.11 that can be a start for another leg lower below 19.00.