USD/MXN could head lower towards last year’s low of 16.60 – SocGen

USD/MXN reversed after briefly testing the 200-Day Moving Average (DMA). Economists at Société Générale analyze the pair’s outlook.

17.42/17.55 likely to cap upside

USD/MXN has resumed its decline after testing the trend line drawn since 2021 at 18.48 (now near 18.10). Recent attempt of rebound has faltered near 200-DMA (17.42/17.55). 

Daily MACD has started posting positive divergence however signals of bounce are not yet visible in price action; the Moving Average near 17.42/17.55 must be overcome to denote a meaningful up move.  

Holding below the Moving Average, the pair could head lower towards last year’s low of 16.60 and projections of 16.40/16.10.