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Exiting USD/MXN long

Exiting USD/MXN long

Kristian Kerr, Sr. Currency Strategist

The decline in global equity markets these past couple of weeks has most certainly helped USD/MXN which recorded a new all-time high on Wednesday. Sentiment is getting a little bit too negative on MXN for my liking and I am starting to wonder if a counter-trend move of some magnitude is around the corner? In USD/MXN, I foresee an important resistance test ahead around 18.7500 as this marks the top end of a trend channel drawn from the 1998 and 2009 extremes. An overshoot of this resistance would not surprise, but I don’t like pressing this early in the year and will be looking to exit the remaining short position from last month around today’s IMM close. I may look to re-enter after a correction.

Long ½ position in USD/MXN from around 17.1400. Looking to take profit on remaining position ahead of today’s IMM close.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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