USD/MXN: Decline likely to persist – SocGen

USD/MXN has experienced a deep pullback after approaching multi-year trend line at 18.48/18.60. Economists at Société Générale analyze the pair’s outlook.

Next supports at 17.00/16.60

USD/MXN failed to reclaim the trend line drawn since November 2021 at 18.48/18.60 recently and this has resulted in a sharp pullback. 

The pair has once again given up its 200-DMA and re-integrated within previous base. This denotes upward momentum has disappeared. Inability to reclaim the MA near 17.70 could mean persistence in decline.  

Next potential supports are located at 17.00 and July/August lows near 16.60.