USD/MXN has damaged decisively under its multi-month vary base close to 19.85/20.00, confirming a rounding high and exposing the pair to deeper draw back. Costs at the moment are approaching a key assist pattern line close to 19.00/18.90—failure to carry right here dangers acceleration towards 18.60 and even 18.15. A brief-term bounce is feasible however possible capped at 19.44, Société Générale’s FX analysts word.
Key pattern assist close to 19 in focus as USD/MXN extends slide
“USD/MXN fashioned a rounding high and breached the decrease restrict of its multi-month vary (19.85/20.00) denoting potential draw back. It has skilled a gradual down transfer after this break and is now drifting in direction of an ascending pattern line drawn snice April 2024 close to 19.00/18.90, which may very well be an interim assist.”
“A brief-term bounce can’t be dominated out however latest pivot excessive at 19.44 could cap upside. Incapacity to defend 19/18.90 can result in persistence in decline in direction of projections of 18.60 and 18.15.”
