USD/MXN drops to 1-week lows as crude oil extends recovery

 The Mexican peso and the Russian ruble are among the top performers on Thursday boosted by a continuation of the recovery in crude oil prices. The WTI barrel is up by more than 1%, near $48.00.

 WTI keeps highs around $48.00

USD/MXN opened the day hovering around 19.00. It started to decline during the European session and accelerated on American hours. It bottomed recently at 18.85, the lowest level since May 4. 

The Mexican peso held well despite US economic data, that showed a larger than expected slide in jobless claims and higher number in the PPI index. Also, it has not been affected by the decline in equity prices. The Dow Jones is falling 0.20% and the Nasdaq is down 0.34%  

Technical levels 

Currently, the pair is trading at 18.86 and is testing an uptrend line that connects April and May lows. A break lower could add momentum to the Mexican peso and clear the way to a decline to 18.70 (Apr 25 low), below the next support is seen at 18.60 (Apr 10 low). To the upside resistance levels might be located 19.00, 19.10/15 (last week low) and 19.25 (May 9 high).