The Dollar continues breaking historic highs versus the Mexican Peso

Emerging market currencies continue getting hurt by the risk aversion that has been created in the markets due to the incredible drop in Chinese stocks, which have translated into further drops in the global markets. The Mexican Peso is one of those currencies that has been dropping lately to all-time lows versus the US Dollar. The USD/MXN has reached a high around the 17.25 level, but if it continues rallying, then the 17.50 may act as a temporary resistance. Its closest support could be the 17.00 level, but below that zone we don’t seem to have any more relevant supports until the 16.50 level. Its 200 day exponential moving average is very far away from the current price levels, indicating that the bullish trend has been very strong. The stochastics indicator is above the 80% line and stays in the overbought zone due to the fact that the indicator cannot rise above the 100% line.