USD/MXN: Stretched downtrend, potential support at 17.90/17.60 – SocGen

USD/MXN has extended its phase of decline after breaking the low of 2022. Economists at Société Générale note that the move is a bit stretched.

Approaching next support zone at 17.90/17.60

“USD/MXN breached the lower limit of the range during 2021/2022 resulting in an extended downtrend. It is close to potential support zone of 17.90/17.60 representing the low of 2018 and projections. 

“Daily MACD is within deep negative territory denoting an overstretched move. Test of this zone can lead to a rebound; the 50-DMA at 18.85/19.00 is expected to be a short-term resistance.”