USD/MXN: Mexican peso tumbles to the lowest since June

The Mexican peso is falling sharply across the board amid concerns over the negotiations of the new North American Free Trade Agreement (NAFTA). USD/MXN reached 18.47, the strongest level since June 5. 

The pair was already at monthly highs, supported by a stronger US dollar in the market. Since last week it had been consolidating round 18.20/25 and today broke decisively above 18.30, a relevant technical level.

Near the end of the session, it was trading at 18.46, up 1.15% for the day and almost 4% since September 25. 

Today the rally was also boosted by US economic data that continues to support rate hike expectations from the Federal Reserve in December. Not even the sharp rise in crude oil prices help the Mexican peso. The WTI was up 1.40% a barrel. 

Technical levels

To the upside, immediate resistance is located at 18.50, followed by 18.75 and 18.80 (June high). On the flip side, support could be seen at 18.30, 18.15 and 17.97 (Sep 5 & Aug 29 high).