USD/MXN: Inability to defend 16.60 can lead to extension in the phase of correction – SocGen
|USD/MXN is probing last year's low of 16.60. Economists at Société Générale analyze the pair’s technical outlook.
Move beyond 17.00/17.20 essential to confirm a meaningful up move
USD/MXN has recently struggled to overcome the 200-DMA (now at 17.20) resulting in persistence of decline. It is probing last year's low of 16.60.
Daily MACD has been posting positive divergence denoting receding downward momentum, but a move beyond the MA near 17.00/17.20 would be essential to confirm a meaningful up move.
Inability to defend 16.60 can lead to extension in the phase of correction. Next potential objectives could be located at projections of 16.40 and 16.10.
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