USD/MXN has broken below its recent consolidation base, signaling renewed downside momentum, with 18.65 now the key barrier to cap rebounds before the pair potentially extends losses toward 18.15 and 17.80/60, Société Générale’s FX analysts note.
Downtrend resumes in USD/MXN
“USD/MXN failed to establish itself above the 50-DMA during its recent rebound attempt and has breached the lower limit of its consolidation range, indicating a resurgence of downward momentum. While a brief bounce is underway, the moving average near 18.65 may cap the upside.”
“If USD/MXN is unable to overcome 18.65, the downtrend may extend, with the next objectives at projections of 18.15 and the July 2024 lows of 17.80/17.60.”