USD/MXN retraces off highs at 21.96, Nafta before Border Wall

Currently, USDMXN is trading at 21.96, marginally up +0.03% on the day, having posted a daily high at 22.03 and low at 21.84.

Trump's inauguration a new beginning

Bloomberg reports, "Mexico’s peso sank to record low and Canada’s dollar posted the biggest slide since June after Wilbur Ross signaled new talks with those countries will begin quickly after Friday’s inauguration. Currencies will still be challenged as “Trump risks to trade don’t appear fully priced in,” Citigroup Inc. analysts including Dirk Willer and Kenneth Lam wrote in a note to clients."

Technical levels to watch 

In terms of technical levels, upside barriers are aligned at 21.99 (horizontal resistance) and above that at 22.00 (psychological barrier). While supports are aligned at 21.88 (horizontal support) and below that at 21.77 (100-SMA). On the other hand, Stochastic (5,3,3) moves in the overbought territory suggesting further losses may be ahead.