USD/MXN resumes downtrend – Société Générale

USD/MXN has turned lower again after failing to reclaim its 50-day moving average, breaking beneath consolidation support and reviving bearish momentum. The focus now shifts to downside targets near 17.85–17.60, with rallies likely capped around 18.37, Société Générale's FX analysts note.

Break below consolidation signals weakness

"USD/MXN has extended its decline after failing to establish itself above the 50-DMA (currently near 18.37) during its recent rebound attempt. The pair has broken below the lower boundary of its brief consolidation, signalling a resurgence of downward momentum."

"The next objectives could be located at 17.85/17.80, followed by the July 2024 lows near 17.60. If a short-term bounce occurs, the 50-DMA near 18.37 may provide resistance."