Swing area between 19.6976 to 19.71377.
The Mexican central bank raised rates somewhat unexpectedly 24.25% from 4.0% yesterday. The move sent the USDMXN sharply lower (MXN higher). However support held near a swing area between 19.6976 to 19.71377. The price low reached 19.7067 and bounced (see post from yesterday).
The rebound could only get near the midpoint between the 200 bar moving average and the four hour chart at 19.9885 and the aforementioned a swing level below before moving back to the downside.
The price in early NY trading has returned back to that swing area below. The low price just reached 19.70205, and is seeing support buyers leaning once again.
With the level holding for the second consecutive day, it increases the levels importance going forward. Traders should push the price lower on a break of the level. Until then however the dip buyers have support to lean against
This article was originally published by Forexlive.com. Read the original article here.