Mexican peso breaking out

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.

With the Mexican peso breaking out on US Dollar strength, from a 2 month base of support; taking out the well-defined trendline from the May high and completing a 38% Fibonacci  retracement of the entire Bull move.  We now project downside to 13.73.

The peso has been an outstanding proxy for the risk on trade, and her strength has corresponded with the run Equities. As such, if our analysis is correct and the peso is poised to weaken further, than perhaps by extension it is time to take profits in the Mexican stock market.

 

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