USD/MXN to see a significant rebound on a break above June highs of 20.75/20.85 – SocGen

USD/MXN vaulted 20.50 on Wednesday. Economists at Société Générale expect the pair to edge higher towards the June peak of 20.75/20.85.

Consolation above 20.20 is crucial for further rebound

“USD/MXN has established itself above short-term moving averages and has crossed above a multi-month descending trend line. These are signals of a bounce.”

“The pair could head towards June peak of 20.75/20.85 which is also a projection for the rebound. This is an interim resistance. Once overcome, an extended up-move could take shape.”

“Consolation above the trend line at 20.20 will be crucial for further rebound.”