USDMXN makes another break lower

MXN is still feeling positive after the elections

We look to have another short-term significant break lower in USDMXN. New Mexican president Obrador continues to make all the right noises on NAFTA negotiations with the US and had a good conversation with Trump following his win.

The pair has made the break under the 19.60 level and the June low and now looks set to have a peep at the 50.0 fib of the April rally.

USDMXN H4 chart

We’ve just been discussing this one on the GWTF post and this pair is a wild horse. It was trading above 20 earlier today. The 50.0 fib looks like the next place to look for decent support but sellers will want to see the broken 60 area holding resistance.

This trade has been great one but there’s bound to be more twists and turns yet to come. As I mentioned in the GWTF comments, I feel we’re still in a situation where we’re one headline away from this pair jumping back well above 20, and more. There’s a few folks loading up shorts on those rallies and I remain short.

Once again, credit to the hard work and analysis of the traders at ForexFlow. Here’s where it all began nearly a month ago.