USD/MXN could extend its rise on a move beyond 17.85/18.00 – SocGen

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.