USD/MXN back below 18.00, near 2017 lows

USD/MXN resumed the downside after rising modestly yesterday. The pair is under pressure as the Mexican peso remains strong in the market. 

Since the beginning of the year, the Mexican currency has risen almost 15% against the US dollar and is the best performer so far. The rally has been supported by Bank of Mexico monetary policy, an improvement in global sentiment and better-than-expected relations between US and Mexico. 

Today in particular, USD/MXN was affected by a decline of the US dollar across the board and a recovery in crude oil prices, that usually benefits the peso. 

Levels to watch

USD/MXN bottomed on Tuesday at 17.84, the lowest in a year. From the lows it bounced to the upside, bu the area around 18.05 capped the upside yesterday and also earlier today. It tuned to the downside again and now is trading at 17.85, headed toward the lowest daily close since May of last year. 

To the upside, resistance levels might be seen at 18.00 (psychological), 18.07 (Jun 27 & 28 high) and 18.30. On the downside, the immediate support is now seen at 17.80/82 (2017 low), followed by 17.70 and 17.45 (Dec 2015 high).