USD/MXN jumps to 5-week highs above 19.40

• Mexican peso resumes slide against US dollar; is among worst performers. 
• USD/MXN up almost 2% since the beginning of the week. 

After a pullback to the 19.20 area, the USD/MXN resumed the upside, and it reached at 19.42, the highest level since January 8. It is holding near the top with a bullish tone. 

A stronger US Dollar and technicals contribute to the rally of USD/MXN. Not even higher crude oil prices limited the upside. The WTI barrel is up almost 2%, above $54.00. Today the Mexican peso and the South African rand are the worst performers so far. The greenback is up across the board, particularly versus European currencies and the yen. 

More gains ahead? 

From a technical perspective, the USD/MXN turned bullish on Monday after breaking a multi-day range above 19.20. It rose initially to 19.32 and then pulled back to 19.20 before resuming the upside. 

The next target is seen around 19.45/50. The mentioned area could limit the upside, but if it continues to rise on top, 19.75 is the next strong resistance. 

The outlook is likely to continue to favor the upside as long as it holds above 19.20. A slide below would ease the bullish pressure while a decline under 19.00 could signal a test of January lows at 18.85/87.