The USD/MXN pair fell again after failing to reclaim its 50-day moving average, breaking below consolidation support and reviving bearish momentum. Focus now turns to downside targets near 17.85-17.60, with rallies likely to culminate around 18.37, foreign exchange market analysts at Société Générale note.
A breakout below indicates weakness
“USD/MXN has extended its decline after failing to consolidate itself above the 50-DMA (currently near 18.37) during its latest rebound attempt. The pair has broken below the lower border of its short consolidation, indicating a return of bearish momentum.”
“Next targets could be 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 could provide resistance.”
