USD/MXN Drops to 4-Month Lows, Eyes 17.00
The Mexican peso is rising sharply against the US dollar as it continues to rally for the fifth day in a row. USD/MXN broke below 17.15 and tumbled to 17.04, reaching the lowest level since December 21.
The pair is trading near daily lows, eying 17.00. While the US dollar is falling across the board, the peso is among the top performers, favored by the rally in crude oil prices. The other currency that i0s rising strongly on Friday is the Brazilian real that pushed USD/BRL to 3.44, the weakest level since August 2015.
USD/MXN is about to post the third monthly decline in a row as it continues to decline from record high levels that reached at 19.44 back in February. The pair is now lower for the current year, after erasing a 10% gain.
To the upside, resistance levels might now be seen at 17.15, 17.22, 17.42 (Dec high) and 17.47 (20-day moving average). On the opposite direction support could be located at 17.00 (psychological), 16.89 (Dec 16 low / Nov 9 high) and 16.68/70 (Oct 21 & 29 high).