USD/MXN to drift towards next potential supports at 17.00/16.60 – SocGen

USD/MXN is drifting towards 17.00/16.60, economists at Société Générale report.

18.00 is near term hurdle

USD/MXN rebound petered out near the trend line drawn since November 2021 at 18.48/18.60. This test has resulted in a sharp pullback. 

The pair has given up its 200-Day Moving Average and re-integrated within the previous base. This denotes upward momentum has disappeared. 

USD/MXN is expected to drift towards the next potential supports at 17.00 and July/August lows near 16.60.  

Recent pivot high near 18.00 is near term hurdle.