Axel Rudolph, analyst at Commerzbank, believes that the USD/MXN cross has the September 2016 and December 2017 highs at 19.9048/19.9234 in its sights.

“Further up the early and mid-December lows can be spotted at 19.9874/20.0091. Still further up the November and December peaks can be made out at 20.6353/20.6574. Minor resistance en route can be encountered at the 19.8097 December 20 low. Slips should find support between February and late March highs at 19.4780/22. Further support comes in along the 200 day moving average at 19.3447.”

The rally of the USD/MXN was caused by news from the USA. White House said Thursday that the U.S. will impose a 5% tariff on all Mexican imports from June 10 — and duties of up to 25% will be added in the coming months if Mexico does not take action to “reduce or eliminate the number of illegal aliens” crossing into the U.S.