Comment:
USD/MXN has fully reversed Mon's bounce early today. Our chart plan is to stay with the S/T bear view that we put out on 12 Jan as long as we don't see a close above 22.00 this week. Our S/T target goal is the 21.09/00 zone and we watch to see how far today's selloff can extend, but it is doubtful that the 21.09/00 zone can be reached today. It could take the week to get there. (17 Jan)
Result:
USD/MXN tested our S/T bear target zone at 21.09/00 on the week and around the 50-day MA at 20.894 it could become a bit more 'tricky' now. We will now move to temporary neutral and wait to see if the mkt can close below the 50-day MA today before attempting any new bear view to 20.50 and lower. If the 50-day MA holds, there could be short covering to 21.24. (26 Jan)
