USD/MXN recovery finds resistance at 19.10 and retreats

• US Dollar rises against Latina American currencies. 
• Mexican peso trims losses but still heads for worst day in a month against the greenback. 

The USD/MXN pair is trading at 18.99, up 0.55%, the biggest daily gain in a month. Earlier today, printed a fresh 3-month low at 18.87 before turning to the upside. 

The greenback is posting mix results across the board on Thursday and is up versus Latin American currencies. It peaked after the release of US economic data and during the last hours pulled back. 

The USD/MXN peaked at 19.11, a 3-day high before pulling back. Today’s move was triggered by a stronger US dollar and also amid some profit taking and an overdue correction. 

If the rally of the Mexican peso over? 

The USD/MXN failed so far to break 19.10. If the intraday correction from the top continues and it drops under 18.90, it would point to the continuation of the Mexican peso strength. The next support is 18.85 followed by 18.70. 

It the dollar holds on top of 19.00 it could point to some consolidation before the next move. If it breaks above 19.10, signals of a temporal bottom will emerge. Since the slide started back in early December, there has not been a significant correction. So if today USD/MXN ends near 19.10 it could be the first one,  signaling the potential end of the peso’s rally, at least for a few days.