100 day MA broken at 20.2137
The USDMXN has broken below it’s 100 day MA at 20.21376. The move below the MA is the first time the price has traded below the 100 day moving average since February 19. The run higher did the price above its 200 day moving average for three days back in February, but the parent fell short of its 38.2% retracement of the move down from the 2020 high at 21.91718 level.
The price and tested the 100 day moving average back at the end of February and again in March but buyers leaned on both tests.
Traders will want to see the price stay below the moving average now. That is close risk for sellers on the break. If the momentum continues, the February low at 19.8887 would be eyed.
Last week, the Bank of Mexico kept rates unchanged (there were some that were looking for a cut). That and hopes for a Covid recovery in 2021, has helped flows back into the MXN (lower USDMXN). Now with the price moving back below the 100 day MA, it adds another level of technical bearishness IF the price can stay below that level going forward.