While the Peso has strengthened back below its 200 day MA, it remains in a well defined trend channel from the October low and resistance comes in multiple ways down to 12.98.
While Monday’s risk on reversal has pumped the brakes on the resurgent U.S. dollar, the technicals suggest that it is not all “rainbows and unicorns” for several emerging money currencies.
Our analysis now suggests that we are on the verge of a powerful “Santa Claus” Rally in US Equities
which holds the potential to carry the benchmark S&P 500 to 1,425 (+5%) by year end.
As we’ve highlighted here at Emerging Money throughout the year the Mexican Market has been a star of the Emerging World in recent years, and sits just 4% off of an All Time High after the recent correction.