USD/MXN: Inability to defend 16.60 can lead to extension in the phase of correction – SocGen

USD/MXN is probing last year's low of 16.60. Economists at Société Générale analyze the pair’s technical outlook.

Move beyond 17.00/17.20 essential to confirm a meaningful up move

USD/MXN has recently struggled to overcome the 200-DMA (now at 17.20) resulting in persistence of decline. It is probing last year's low of 16.60.

Daily MACD has been posting positive divergence denoting receding downward momentum, but a move beyond the MA near 17.00/17.20 would be essential to confirm a meaningful up move. 

Inability to defend 16.60 can lead to extension in the phase of correction. Next potential objectives could be located at projections of 16.40 and 16.10.