USD/MXN corrects further to the downside, prints fresh low under 24.00

• Mexican peso recovers for the second day in a row versus the US dollar. 
• USD/MXN moves off all-time highs, corrects lower on dollar’s weakness. 

The USD/MXN dropped during the American session to 23.81, reaching the lowest level since last Thursday. On Monday it hit a record high at 25.71. Volatility remains at extreme levels. 

During the last hours, USD/MXN bounced to the 24.00 but with the bearish tone intact. The very short-term technical outlook favors the downside, as price remains under an uptrend line seen at 24.30. If it rises back above, the bearish pressure will likely ease. On the downside, the immediate support is located around 23.80/85, below the next one emerges at 23.45. 

The slide on Tuesday is being driven by a decline of the US dollar across the board. An improvement in market sentiment weakened the demand for the greenback that is having the worst performance in more than a week. Not even higher US yields are helping the greenback. In Wall Street, the Dow Jones gains 2.50% and the Nasdaq 1.50%. 

Among emerging market currencies, the biggest gainer is the South African rand (USD/ZAR down 2.30%) followed by the Czech corona (USD/CZK -2.25%) and then comes USD/MXN with a decline of 2.30%. 

Technical levels