USD/MXN trims gains, remains around 24.00; Mexican peso remains under pressure

• Mexican peso under pressure on Monday after downgrades and crude oil slide. 
• USD/MXN with a bullish perspective, so far limited by 24.20. 

The USD/MXN pair is up on Monday by more than 1% boosted by a slide of the Mexican peso. The collapse in crude oil prices weighed on MXN. The pair peaked at 24.20 and during the American session pulled back to 23.90. As of writing, it was hovering around 24.00. 

The Mexican peso was among the worst performers on Monday affected by the decline in crude oil prices and credit rate downgrades. The WTI barrel (May contract) was falling by more than 30%, the biggest one-day slide ever. On Friday, Moody’s downgraded Mexico's rating. It also downgraded Pemex to junk status. Over the last hours, the MXN has been able to stabilize, holding on to losses. 

Despite the decline in crude oil, equity prices were mixed in Wall Street, helping to limit losses in riskier assets. 

Technical outlook 

The USD/MXN pair holds a bullish tone in the short-term that will remain in place as long as it maintains 23.65/70 (uptrend line). A break below 23.65, should target 23.30. On the upside, the critical resistance stands around 24.20 (daily high) followed by 24.40 and 26.60.