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AMLO Expected To Announce Tesla Deal, MXN Resiliency Continues

MEXICO
  • President AMLO attacked the political opposition and criticized marchers that had packed a historic square in the nation’s capital to protest his electoral overhaul.
  • Separately, the President is expected to formally announce that a deal has been made on Tesla Mexico Investment.
  • The Mexican peso continues to trade resiliently and the USDMXN outlook remains bearish. The consolidation below key support at 18.50 emboldens the bearish theme. A low of 18.2994 last week placed the pair at fresh trend lows, and the lowest level since April 2018.
    • Price action continues to narrow the gap towards more significant support at 17.9401, the 2018 lows. Initial resistance levels to watch are 18.50 and then 18.5593, the 20-day EMA.

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