Economists at Société Générale analyze USD/MXN technical outlook.

Move beyond 17.40 to open up 17.80

USD/MXN experienced a relentless downtrend after breaking below 2022 lows. It has recently approached interim support zone of 16.60/16.40 representing projections and more importantly the trend line drawn since 2008.  

The pair has witnessed an initial bounce and has revisited July high of 17.40. Daily MACD has been posting positive divergence denoting receding downward momentum. If it overcomes 17.40, an extended rebound is likely towards 17.80 and graphical levels of 18.00.