USD/MXN Price Analysis: Mexican Peso hits fresh multi-year highs, starts looking at 18.50

• US Dollar extends slide versus Emerging Market currencies.
• Mexican Peso is at the highest level since February 2020.
• USD/MXN to remain under pressure below 18.90, despite oversold readings.

The USD/MXN is falling for the seventh time out of the last eight trading days and trades at the lowest level since February 2020, under 19.00. The pair bottomed at 18.81, before rebounding modestly.

A weaker US Dollar pushed USD/MXN further lower. Technicals also played a role in sending it to the downside. The pair was able to consolidate under the strong support (now resistance) area of 19.00/05.

Technical indicators, like the RSI below 30, are indicating oversold conditions. Despite that, the signs point to further losses. The next support area is seen at 18.75 and then comes the 2020 low near 18.50. A rebound, while contained under 19.15, should not change the current bearish bias for USD/MXN.

USD/MXN daily chart