USD/MXN extends slide to fresh 7-month lows, approaches 18.00

The Mexican peso is rising for the second day in a row gains the US dollar and today it reached a fresh intraday high since the US Presidential elections. USD/MXN bottomed during the American session at 18.23 and currently is trading around 18.28. 

During the first half of the day, the pair recovered some ground but it failed to rise above 18.45 and turned again to the downside, on the back of a decline of the US dollar, a recovery in crude oil prices and the agreement between the US and Mexico on sugar trade. 

U.S. Commerce Secretary reaches sugar trade deal with Mexico

Technical outlook 

The pair yesterday broke the key support located around 18.45 and today it is confirming under that area. The trend and the short-term outlook favors the downside, with the pair consolidating under relevant levels. To the downside, the next target could be seen at 18.15 (Nov low). If the slide continues, the next medium-term support could be located between 17.90 and 18.00. 

On the upside, the US dollar could remove some of the negative momentum, if it climbs on top of 18.50. Above the next resistance is seen at 18.75 followed by 18.90 and the strong 19.25 (Apr and May high).