USD/MXN extends slide, eyes last week lows; Mexican peso outperforms

• Mexican peso rises across the board on Tuesday on risk appetite.
• USD/MXN hovering slightly below 24.00 as downside losses momentum.

The USD/MXN is falling for the second day in a row on Tuesday amid an improvement in risk sentiment. Equity prices in Wall Street in the US are up by 1.5% and crude oil gains 20%.

The pair bottomed at 23.78 before rebounding toward 24.00. So far it remained under the mentioned area, holding on to recent losses. From Monday’s top, it lost 3.70% and it is back near last week lows.

Most emerging market currencies are up versus the US dollar on Tuesday. The Russian ruble is the best performer (USD/RUB -1.45%) followed by the Colombian peso (USD/COP -1.10%) and then comes the Mexican peso (USD/MXN -0.35%).

Technical outlook

The USD/MXN found resistance above a key short-term uptrend line that stands at 23.75/80.  A break lower should clear the way to more losses, targeting initially 23.60 and then 23.30. On the upside, the critical level is 25.00. Before that area, resistance emerges at 24.20 and 24.65.