USD/MXN steady around 19.20

The Mexican peso continues to move with a positive tone against the US dollar and is consolidating gains. An improvement in market sentiment and a recovery in crude oil prices helped the MXN today. Also, the decline in the odds of Donald Trump winning the US presidential elections could have helped the peso. 

Last week USD/MXN started to retreat after hitting all-time highs at 19.92. The recovery started on the back of a weak US dollar and continued after the Mexican central bank rose rates by 50 basis points. 

Today the pair is flat ahead of the US employment report, hovering around 19.25. On Tuesday it bottomed at 19.14 hitting the lowest level since September 15 and then rebounded but remained below 19.40. 

Technical levels 

To the upside, resistance levels might lie at 19.30 (daily high), 19.40 (Oct 4 high) and 19.55. On the opposite direction, support could be located at 19.20 (daily low), 19.15 (weekly low) and 19.00 (psychological).