USD/MXN drops on Friday and erases weekly losses

The Mexican peso rose sharply against the US dollar on Friday and erased weekly losses. USD/MXN is about to end the week near 18.50 after trading close to 19.00 just two days ago.

The pair fell from 18.75 to 18.53 after the US employment report. Then it rebounded but remained below 18.70. It was about to end the week hovering around 18.55/60, around the same level it had a week ago.

During the week the US dollar reached 18.92, the highest level in three weeks but then it lost bullish momentum. Short-term technical indicators now favor the Mexican peso. The bearish correction of the USD/MXN could extend toward 18.40 where the 20-day moving average currently stands.

To the upside, the immediate resistance is seen around the 18.70/75 area and above the US dollar could again rise further toward the 19.00 handle.