USD/MXN: Reclaiming 50-DMA at 17.40 is crucial for affirming bounce – SocGen

USD/MXN oscillates in a narrow range around the 16.75 region. Economists at Société Générale analyze the pair's technical outlook.

Downtrend overstretched

USD/MXN has experienced a relentless downtrend after breaking below the sideways consolidation during 2021/2022. Although the move is a bit stretched, signals of a meaningful rebound are not yet visible. 

Next potential objectives are at 16.60/16.40 and projections of 15.90. Achievement of these levels could result in a phase of rebound however reclaiming the 50-Day Moving Average near 17.40 is crucial for affirming a meaningful up-move.