Still Channel Bound

Despite recent attempts for bulls to take charge, I see UM contained for now within a channel.

19.30 and 19.36 have acted as turning points recently, will be interesting to see if they are tested.

At this point MXN weakness stems from political news regarding NAFTA, Obrador's policies regarding oil and general dollar strength.

I remain short scalp biased with an openness to balancing my bias with longs as needed.

Comment:

While I remain short biased due to the first of the month trade whereby expats are cashing out dollars for pesos to send back to mexico, this can be a bit troubling this week with emerging market weakness in Argentina, Turkey and South Africa.

Mexico may perhaps be the strongest emerging currency, however that may mean the strongest of a weak basket.

Stay safe and trade well.