USD/MXN accelerates slide to 5-day lows and tests 19.00

• Mexican peso rises sharply against US Dollar despite lower crude oil prices.  
• USD/MXN ends bullish correction, back under pressure.  

The USD/MXN pair reached yesterday the highest level in 12 days but then moved off highs offering the first signal about potential exhaustion of the US Dollar’s correction. Since the beginning of Wednesday, the pair has been moving with a bearish bias. During the US session, the pair accelerated the decline and dropped to 19.01, hitting the lowest level in five days.  

Near the end of the day, it is trading slightly above 19.00, holding a strong bearish tone A consolidation around current levels would expose the next support at 18.90. Under that level, a test of monthly lows around 18.85 is expected. To the upside, the greenback needs to rise back above 19.15 in order to remove the negative momentum.  

The move lower in USD/MXN took place despite the slide in crude oil prices and lower equity prices. The WTI falls 1.45% while US major indexes are down on concerns about the global outlook. Among currencies, the best performer so far is the Brazilian real boosted by comments from Economy minister Guedes regarding hist privatization and pension plan.  

In Venezuela, opposition leader Juan Guaido swore himself as interim president. US President Trump recognized him as the official president. Also, Trump  told Speaker Nancy Pelosi he plans to deliver his State of the Union address in Congress on January 29, despite the government shutdown.