USD/MXN has broken below a key consolidation range, forming a bearish rounding top pattern and signaling further downside risks toward multi-month lows, Société Générale's FX analysts note.
Rebound likely capped below 19.85
"USD/MXN broke the lower limit of a multi-month consolidation and has formed a rounding top pattern which generally points towards potential downside. It is now challenging the trough of last week near 19.30."
"If a brief rebound develops, lower end of previous range at 19.67/19.85 could cap upside. Next objectives could be located at last September / October lows of 19.10/19.00 and 18.70."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD keeps range at around 0.6550 after China's Q2 GDP data
AUD/USD keeps its range near 0.6550 in Asian trading on Tuesday, little impressed by the Chinese Q2 GDP beat amid the mixed Retail Sales and Industrial Production data. The US Dollar's upside consolidative mode also leaves the Aussie in a tight range as traders assess Trump's tariff threats ahead of US CPI data.
USD/JPY holds near multi-week top, eyes 148.00 or June swing high
USD/JPY consolidates below the 148.00 neighborhood in the Asian session amid expectations that the Bank of Japan will forgo raising interest rates in 2025 in anticipation of the economic fallout from higher US tariffs. Further, Japanese political woes boost yields to multi-year highs, lending support to the pair.
Gold: Will XAU/USD take out key $3,377 barrier on US inflation data?
Gold price pauses correction from multi-week highs as dip-buying emerges ahead of US CPI inflation data. The US Dollar hangs near three-week highs as markets digest the latest Trump’s tariff threats and Powell bashing. Gold price tests 21-day SMA at $3,339 following rejection at 23.6% Fibo level at $3,377, daily RSI stays bullish.
Top Crypto Gainers: XCN, PENGU, SUI – Hold momentum while Bitcoin slips under $119,000
Bitcoin takes a breather after hitting a record high of $123,218 on Monday, resulting in a pullback under $119,000 at press time on Tuesday. The top altcoins are mirroring the pullback, while Onyxcoin, Pudgy Penguins, and Sui maintain bullish momentum, suggesting further gains if Bitcoin finds a support level.
Five fundamentals for the week: Investors eye tariff circus and US inflation data Premium
Which country will be the next to receive a letter from America? US President Donald Trump has been extending his tariff threats through the weekend. Has the US economy felt the consequences of levies already imposed? These are the topics for another hot summer month.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.