USD/MXN: Technical levels to watch next are 17.10/16.95 – SocGen

The MXN recaptured 17.50 last week and rallied to a fresh cycle high of 17.32 yesterday against the US Dollar. Economists at Société Générale analyze USD/MXN technical outlook.

Signals of a meaningful rebound are not yet visible

USD/MXN failed to overcome its 50-DMA near 18.00 recently and has cut below the low of last month denoting resumption in downtrend. 

Daily MACD has started posting positive divergence however signals of a meaningful rebound are not yet visible. 

Holding below the peak formed earlier this week near 17.60, the pair is expected to head lower. Next potential objectives are at projections of 17.30 and 17.10/16.95.