USD/MXN: Break below 17.45 to open up 17.10/16.95 – SocGen

Economists at Société Générale analyze USD/MXN technical outlook.

18.20/18.40 likely to contain short-term upside

“USD/MXN extended its downtrend after breaking the lower limit of the range since March. It has achieved the objective of 17.45 representing 2017 lows. An initial bounce is taking shape however it would be interesting to see if the pair can overcome the 50-DMA near 18.20/18.40 which is also recent pivot high. Failure could mean persistence in down move.”  

“Break below 17.45 can lead the pair towards next projections at 17.10/16.95 which is also the low formed in 2016.”