USD/MXN to decline towards last year low of 16.60/16.40 on failure to defend 16.75 – SocGen

The Mexican Peso (MXN) carved out a small gain versus the US Dollar (USD) on spot basis last week. Economists at Société Général analyze the USD/MXN technical outlook. 

16.75 is crucial support

USD/MXN recently formed an intermittent low at 16.75 and has embarked on a rebound. It is attempting a cross above the 200-DMA. 

Trend line drawn since 2021 at 17.85/17.95 is a crucial resistance near term. Only if this is overcome would the pair confirm a meaningful up move.  

Failure to defend 16.75 can extend the decline towards last year low of 16.60/16.40 and perhaps even towards 16.10.