USD/MXN: Chances of extending gradual decline to 2017 low at 17.4395 – Credit Suisse

The USD/MXN pair is experiencing a gradual decline, which analysts at Credit Suisse consider likely to extend to 18.5155/17.4395.

Key resistance lies at 19.9131/19.9482

“Given the USD has topped out, we think overall risk is likely to remain slightly to the downside through the first quarter of 2023 and therefore we see room to extend the gradual decline to the 2020 low at 18.5155, where we think potentially harder support is likely to be found. If this one were to break too, the next key support is identified at 17.4395 the low of 2017.”

Key initial resistance is at the recent high and the 200DMA at 19.9131/19.9482although only above the downtrend since the end of 2021 in 20.2145 it would indicate instead that a more range-constrained phase is emerging.”

Source: Fx Street

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