USD/MXN breaks above 18.00 and rises to 3-month highs

The Mexican peso has been among the worst performers over the last week across the forex market despite the recovery in crude oil prices. Latin American currencies underperformed and the US dollar extended the recovery after falling during the previous three months.

USD/MXN bottomed in April at 17.05 and from there bounced to the upside. Initially, it found resistance on the strong 18.00 barrier but last week it broke above and on Friday it consolidated on top.

During the current week extended the rally and today peaked at 18.38, the highest level since February 18. It was trading at 18.30/32, around the same level it closed yesterday.

USD/MXN technical levels

To the upside, resistance levels might be located at 18.36/38 (daily high), 18.62 (Feb 02 high / Feb 09 & 10 low) and 19.00 (psychological). On the opposite direction, support could be seen at 18.21 (May 6 & 9 high), 18.00 (psychological / February low) and 17.85 (May 11 low).