USD/MXN hits 3-months highs above 19.00 amid a stronger US Dollar

• US dollar rises sharply against emerging market currencies. 
• USD/MXN up 2.5% since the beginning of the week. 
• Key event ahead: FOMC statement at 18:00 GMT. 

The USD/MXN pair is rising sharply on Wednesday amid a rally of the greenback against commodity currencies and also boosted by technical factors. 

The US Dollar gains across the board and particularly against Latin American currencies. The greenback is up around 1% today versus the Brazilian Real, the Colombian Peso and the Argentinian Peso. Against the Mexican currency, the dollar rises today 0.75% and since the beginning of the week 2.55%. 

USD/MXN broke earlier today 19.00 and jumped to 19.20, hitting the highest intraday level since January 12. From the highs pulled back modestly and it was hovering around 19.10. The pair could post the first close above 19.00 in three months. The consolidation on top of 19.00 could open the doors to more strength in the short-term. 

Technical levels 

To the upside, the immediate resistance is seen at the 19.15/20 range and above the 19.30 line. On the flip side, now 19.00 is the immediate support. If the pair retreats and the pair ends the day under 19.00 it would remove the bullish tone, opening the doors to an extension of the correction. The key support is seen at 18.50/55.