USD/MXN extends slide, approaches 2017 low

The Mexican peso is rising against the US dollar for the sixth day in a row. USD/MXN dropped from 18.70 to 18.58, reaching the lowest level since April 24, moving closer to 2017 lows that lie at 18.45. 

A weak US dollar and crude oil prices continue to favor the downside in the USD/MXN. The WTI barrel is falling marginally today, but is consolidating above $48.50, near 2-week highs. 

Today’s US economics data, that included housing starts, building permits, and industrial production had no impact on the pair. The key event is on Thursday with the decision of the Bank of Mexico regarding interest rates. Most analysts expect no change from Banxico but some warn that a 25 basis point hike to 6.75% is possible. 

Technical levels 

To the downside, immediate support is located at 18.58 (daily low), 18.58 (Apr 11 low) and 18.45 (2017 low). To the upside, resistance could be seen at 18.70, 18.80 (weekly high) and 18.90 (May 12 high).