Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
USD/MXN – Big Support Test Coming Up

USD/MXN – Big Support Test Coming Up

Kristian Kerr, Sr. Currency Strategist


Price & Time covers key technical themes daily and can be delivered to your inbox each morning by joining the distribution list: Price & Time

Talking Points

  • USD/MXN back to flat on the year
  • 200-moving average test coming up

USD/MXN – Big Support Test Coming Up

The turnaround in USD/MXN since the first half of February has been pretty remarkable. Since the exchange rate traded at all-time highs on February 11, it has fallen almost 12%. To put this into some context, it was up 11% during the month of January alone!

Get DailyFX’s top trading opportunities of 2016 HERE.

The 200-day moving average is nearby at 17.0200. USD/MXN hasn’t traded below the 200-day moving average in over a year and a half. I am not a huge fan of moving averages, but the 200-day moving average is one you have to keep an eye on for the simple reason that everybody else is watching it. As I have noted before, the widely watched indicator has a higher propensity to elicit a response when price has been above it for more than a year. So we’ll see how USD/MXN reacts when it gets around there. With the exchange rate in the tail end of a Gann “death cycle” (45-50 days down in one direction) it would seem the pair is susceptible to a turnaround of some sort over the next few days. If it is a weak bounce or we don’t get a bounce at all then that will be a pretty powerful technical signal that this move lower in USD/MXN still has a ways to go. Keeping with the moving average theme of today’s piece, the 50-day moving average has conspicuously turned into resistance over the past month. I would probably have to see that level retaken (currently at 17.5500) to take any sort of broader upside resumption scenario more seriously.

What is the #1 mistake most FX traders make? Find out HERE.

--- Written by Kristian Kerr, Senior Currency Strategist for

To contact Kristian, e-mail Follow me on Twitter @KKerrFX

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