- USD/MXN extends slide: down 3.4% from last week high.
- Mexican peso strengthens amid US elections and despite crude oil slide.
The Mexican peso is rising for the fourth-day in-a-row against the US dollar. The recovery in Mexican assets after the sell-off of a week ago, some weakens seen in the US dollar during the last five days and the improvement in market sentiment favored the peso.
The USD/MXN traded yesterday above 20.10 and recently hit 19.72, the lowest level in a week. From the lows bounced to the upside, rising back to the 19.80 area, still lower for the day.
The peso was hit eight days ago after President-elect Andres Manuel Lopez Obrador canceled the construction of a new airport for Mexico City creating concerns among investors. The greenback jumped to 20.47 before turning to the downside. The correction continues to move on and now markets await the results of the US mid-term elections that are likely to have an impact on the greenback and also the Mexican peso. The results will start to hit the wires around 00:00 GMT.
USD/MXN Levels to watch
To the downside, the immediate support is seen at 19.65 followed by the 19.45 area and then 19.30. The main trend still points to the upside. In order for the pair to recover the bullish strength, it needs to break a short-term bearish trend line, currently at 19.95/20.00. Above, resistance levels might be located at 20.15 (Nov 5 high) and 20.30.
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