Technical Analysis

200 bar MA on the 4-hour chart tested

The Bank of Mexico raised rates by 0.25% yesterday and the move (and comments) helped to nudge the price away from its 100 bar MA on the 4-hour chart (blue line) and also away from a trend line from the April low.  The price did stall near the swing levels in the 20.216-20.244 area.  

Today, the price has been able to break through that swing area (the focus is on European cars today). The break has reached the 200 bar MA on the 4-hour chart (green line in chart above – see post yesterday) at 20.01755.  The price has moved a little below the level. Will it slow the fall?  That is the question going forward.

If the momentum continues, the 38.2% at 19.80336 will be the next target.  

Holding, and the “break” area above will be eyed…

I expect some profit taking here from the shorts. 

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