USD/MXN erases weekly gains as crude oil recovers

The Mexican peso is rising sharply against the US dollar on Wednesday supported by a rally in crude oil prices. The barrel jumped after the EIA report. Even before that report, the Mexican currency was already higher versus the greenback. 

WTI clinches daily highs above $47.00 post-EIA

USD/MXN yesterday reached the highest level in two weeks at 19.25 and then bullish momentum eased. The area around the highs capped the upside, like it did during April.   Today the pair started to correct lower and it accelerated during the last hours. 

Recently bottomed at 18.93, the lowest level since Monday. Currently it trades at 18.96, marginally below the level it closed on Friday. 

Technical levels 

To the upside, the immediate resistance is seen at 19.25, followed by 19.43 (Mar 6 & 7 low) and 19.55 (Mar 10 low). On the downside, support now might lie at 18.90 (weekly low) and 18.65 (May 02 low).