USD/MXN: Ongoing down move to persist on failure to defend 16.60 – SocGen

Economists at Société Générale analyze USD/MXN technical outlook.

Cross above 200-DMA near 17.00/17.20 crucial to avert one more leg of decline

USD/MXN failed to establish above 200-DMA near 17.20 in recent attempt extending the decline towards last year low of 16.60 which is a potential support. 

Daily MACD has been posting positive divergence denoting receding downward momentum but signals of reversal in downtrend are not yet visible. 

Cross above the 200-DMA near 17.00/17.20 would be crucial to avert one more leg of decline. 

In case the pair fails to defend 16.60, ongoing down move is likely to persist towards next projections at 16.40 and 16.10.