USDMXN moves lower after Bank of Mexico hike, but finds support at swing area target | Forexlive

The Bank of Mexico hiked rates by 50 basis points. That was more than the 25 expected. The target rate reached 11%.

The MXN moved higher on the announcement, but support near a swing area has held support.

Looking at the hourly chart above, the USDMXN was trading between the 100 hour moving average above at 18.9890 (blue line), and the 200 hour moving average below at 18.8554 (green line).

There was a number of tests of the 200 hour moving average both yesterday and today, but momentum faded on each of the small breaks.

There also was some tests of the higher 100 hour moving average on two separate occasions today.

The announcement sent the price below the lower at 200 hour moving average, and also the 61.8% retracement of the February trading range at 18.80429. However the price did find support near a swing area of recent lows and highs going back to January 12 (see red numbered circles and yellow area on the chart above). That area came between 18.7069 and 18.7313.

The low price reached 18.73185 and has bounced, just above the high of the swing area.