USD/MXN drops to lowest in 12 weeks, tests 19.00

• The Mexican peso is among the top performers on Monday. 
• USD/MXN falls to test 19.00, for the first time since mid-October.

The USD/MXN pair resumed the decline on Monday and reached the lowest since October 18. The Mexican remains among the strongest currencies since mid-December and is rising across the board. 

The pair rebounded earlier today to 19.20 but turned to the downside and during the last three hours accelerated the slide. It is trading at 19.01, at daily lows, under pressure. 

The recovery in crude oil prices, technical factors and positive risk sentiment toward Mexican assets continue to support the bearish bias. So far, gasoline supply restrictions in Mexican are not affecting the MXN. 

Levels to watch 

The trend continues to point to the downside. On Friday, USD/MXN posted the fifth weekly decline in-a-row, and no signals of a correction are seen yet. 

To the downside, the immediate support is the 19.00 area, a consolidation below would clear the way for the next strong support seen at 18.85 followed by 18.70. To the upside, resistance levels now could be observed at 19.20 (daily high), 19.30 and 19.45.