USD/MXN could test the low of 2017 around 17.60/45 – SocGen

The MXN rallied to a trend high of 17.83 against the USD. Economists at Société Générale expect the USD/MXN pair to extend its move downward. 

Signals of reversal are not yet visible

“USD/MXN has broken the lows of March denoting persistence in downtrend.”

“Daily MACD is at a higher level as compared to those lows forming a positive divergence however, signals of reversal are not yet visible.”

“The 50-DMA near 18.20 is first resistance. Break above this hurdle is essential to affirm a short-term up move. Failure could mean continuation in downside towards the low of 2017 near 17.60/17.45 which is also the lower limit of a multi month channel.”