USD/MXN has rebounded from its 18.20 low but continues to face resistance at the 50-DMA. A break above 18.65 is needed to confirm an extended recovery, while failure to clear it could invite renewed downside pressure, Société Générale’s FX analysts note.
USD/MXN bounce faces key hurdle at 18.65
“USD/MXN has staged a bounce after carving out an interim low near 18.20 last month. It is still struggling to overcome the 50-DMA. Daily MACD has been posting positive divergence highlighting receding downward momentum.”
“However, a break beyond recent pivot high of 18.65 will be crucial for confirming an extended bounce. Inability to cross 18.65 may denote a risk of one more leg of decline.”