USD/MXN: Decline could continue towards 17.00 and July/August lows near 16.60 – SocGen

Economists at Société Générale analyze USD/MXN technical outlook.

A sharp pullback has taken shape

USD/MXN failed to reclaim the trend line drawn since November 2021 at 18.48/18.60 recently; a sharp pullback has taken shape after this test.

The USD/MXN pair has once again given up its 200-DMA and re-integrated within the previous base. This denotes the possibility of persistence in decline.

Holding below the Moving Average near 17.70, there is a risk of continuation in decline towards 17.00 and July/August lows near 16.60.