USD/MXN proxy trade to US elections, bears break below 200 dma

Currently, USD/MXN is trading at 18.3088, down -0.66% on the day, having posted a daily high at 18.4460 and low at 18.2532.

USD/MXN is extending the downside on the view that a Clinton victory is on the cards as the clear favorite. The peso is a proxy trade to this event given Trumps intentions to build a wall to prevent illegal immigrants entering the United States of America as a foundation to reinventing the US's open boarders policy regarding immigrants, tackling drug trafficking particular, but realistically, that may not be something that congress would agree to spend tax-payers money on, and Peña Nieto, Mexico's president said that they would not be paying for it.  

CNN on demographic information: Latinos in Florida polling better than expected for Trump

Nevertheless, USD/MXN finds traction on polls that swing in Trumps favor, although the cross has managed to penetrate below the 200 dma at 18.4476 to recent aforementioned lows, and has broken the rising support from April 2015 commencing uptrend. An upset to markets on a Trump win could see USD/MXN recover and hunt down the 20.00 handle and September highs.  

USD/MXN levels

With spot trading at 18.3193, we can see next resistance ahead at 18.3417 (Weekly Classic S2), 18.3818 (Daily Classic S3), 18.3824 (Yesterday's Low), 18.4093 (Daily 200 SMA) and 18.4346 (Daily Open). Support below can be found at 18.2532 (Daily Low), 17.9076 (Weekly Classic S3), 17.1778 (YTD Low), 16.5012 (Annual Low) and 12.8413 (3 Year Low).

The Clinton win offers poor risk reward by now