USD/MXN falls below 20.50, 2-week lows

The Mexican peso is among the top performers in the currency market on Tuesday. Against the US dollar reached the strongest level in two weeks. The Mexican currency gained momentum today despite the correction in crude oil prices. Expectations of capital inflows after the auction of oil and gas blocks in Mexico, helped the peso. 

USD/MXN is falling 0.90% on Tuesday and currently trades at 20.40/43. Earlier today the pair tested levels on top of 20.60 and then turned to the downside. Recently bottomed at 20.36, the lowest level since November 22. 

For the first time since the US presidential elections the pair is back below the 20-day moving average and so far is consolidating under last week lows. 

Last week, the pair jumped to 2-week highs after the announcement of the resignation of Agustin Carstens, the Governor of the Bank of Mexico. The pressure on the Mexican peso was limited and by Friday, the currency recovered all losses. 

USD/MXN technical levels

To the upside, resistance levels might be located at 20.55 (Dec 2 & 5 low), 20.70/75 (Dec 5 high) and 20.85/90 (last week highs). On the flip side, support could be seen at 20.30 (Nov 22 low), 20.15 (Nov 16 low) and 19.70 (Nov 9 & 10 low).