USD/MXN Price Analysis: Mexican peso under pressure amid risk aversion, hit record lows versus US dollar

• Mexican peso among worst performers across the globe, down 4% against US dollar. 
• USD/MXN hit new record highs at 22.98, then retreats, holding above 22.00.

The USD/MXN jumped to 22.98 earlier on Thursday as global markets collapse. The Mexican peso trimmed losses later but the pair held above 22.00 and as of writing trades at 22.25, above previous record highs and still under pressure. 

The collapse across financial markets sent the Mexican peso sharply lower. In Wall Street, the Dow Jones is moving back toward daily lows and its falling 8.55%; while the S&P 500 tumbles 7.70%. Crude oil is off lows but losing 4.60%. 

Among currencies, the greenback is the best performer, rising even against the Japanese yen that usually is biggest gainer in times of financial stress. Commodity and emerging market currencies are falling sharply amid coronavirus panic. 

USD/MXN Forecast Chart

Technical indicators show extreme overbought conditions in the short-term but no sign of consolidation/correction are seen. The 22.25/30 is becoming the immediate resistance followed then by 22.50 and 23.00.