Société Générale economists analyze the technical prospects of the USD/MXN.
Testing the upper limit of the previous base at 17.40
USD/MXN evolved within a base after reaching an intermittent low near 16.60 in July. It has recently broken above the upper boundary, suggesting a recovery of bullish momentum. This is also highlighted by the daily MACD, which has been recording a positive divergence and has recently crossed above the balance line.
The pair bounced towards the descending trend line drawn since September 2022 at 17.73. A pullback is currently underway, however, the upper base band at 17.40 should provide support. Defense of this level is expected to result in a bullish move towards the 200-DMA near 17.95/18.00.
Source: Fx Street
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