USD/MXN could head lower towards last year’s low of 16.60 – SocGen
|USD/MXN reversed after briefly testing the 200-Day Moving Average (DMA). Economists at Société Générale analyze the pair’s outlook.
17.42/17.55 likely to cap upside
USD/MXN has resumed its decline after testing the trend line drawn since 2021 at 18.48 (now near 18.10). Recent attempt of rebound has faltered near 200-DMA (17.42/17.55).
Daily MACD has started posting positive divergence however signals of bounce are not yet visible in price action; the Moving Average near 17.42/17.55 must be overcome to denote a meaningful up move.
Holding below the Moving Average, the pair could head lower towards last year’s low of 16.60 and projections of 16.40/16.10.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.