The Mexican Peso (MXN) has surged on improving sentiment as Andres Manuel Lopez Obrador, the country’s next president spoke with President Trump about border security, the North American Free Trade Agreement (NAFTA) and a potential bilateral trade deal. Lopez Obrador calmed nerves by repeating his pledge to maintain fiscal discipline and respect private investment.
On the 4-hourly chart, USDMXN is finding strong support at the 50% retracement from the lows of April to the highs of June at 19.45. A break of this level is needed for trend continuation to 19.10 and 18.80. Any bullish reversal will find resistance at 19.63 and then 19.80. A break of 19.80 is needed for a possible change of trend.