USD/MXN: Defence of 16.60 can lead to a short-term bounce – SocGen

FXStreet Insights Team FXStreet

Economists at Société Générale analyze USD/MXN technical outlook.

16.60 remains important support

USD/MXN rebound petered out near the trend line drawn since September 2022 at 17.73. It has staged a steady pullback and is now challenging 50-DMA near 17.00. It would be interesting to see if the pair can carve out a higher low as compared to the ones in July/August at 16.60. Defence of this level can lead to a short-term bounce towards 17.42 and the trend line near 17.73.

Only if the support at 16.60 gets violated would there be risk of a deeper downtrend.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.