The Mexican Peso weakened significantly last week. Economists at Société Générale analyze USD/MXN outlook.
A large downside is not envisaged
USD/MXN staged the expected rebound after carving out higher trough near 17.00 in September. It has faced interim hurdle near 200-DMA and the trend line drawn since July 2022 at 17.85/18.00.
A large downside is not envisaged; recent pivot low at 17.00 is key support.
A move beyond 17.85/18.00 could result in an extended up move towards 18.25 and 18.60, the 76.4% retracement from March.
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