USD/MXN extends correction and erases weekly gains

On Friday, the Mexican peso was among the top performers in the currency market. It recovered ground against the US dollar for the second day in a row, erasing weekly losses. 

USD/MXN traded momentarily below 19.00. It bottomed at 18.93 before bouncing to the upside. It was trading around 19.02, near the same level it had a week ago. 

Last Friday, the Peso tumbled after the FBI reopened Clinton’s emails investigation. The bullish impulse lasted until yesterday when USD/MXN peaked at 19.54. Since then it has been correcting lower, dropping significantly. 

Volatility remains high and is expected to continue that way, at least until after the US presidential election. A Trump victory could send the pair even higher considering the moves of last month. On the other side, if Clinton gets elected the bearish correction in the USD/MXN could continue. 

Technical levels 

To the upside, resistance levels might be located at 19.25 (Nov 4 high), followed by the 19.50 handle. On the opposite direction, support levels could be seen at 18.85 (Oct 28 high) and 18.68 (Oct 28 low).