USD/MXN: Downtrend may eventually extend on failure to surpass 20.30 – SocGen

USD/MXN has returned above 20.00. The pair could enjoy further gains on a break above the 200-day moving average (DMA) at 20.30, economists at Société Générale report.

Break of 19.41 can result in a deeper downward move

“Defending the multiyear trend line and May lows of 19.75/19.41 can lead to a short-term up move; it would be interesting to see if the pair can reclaim the 200-DMA near 20.30. Holding below this hurdle, the downtrend may eventually extend.”

“Break of 19.41 can result in a deeper down move towards next objectives at projections of 19.05/18.90 and 2020 low of 18.50.”