The recovery of the Peso stalled at 17.00. The economists of Societe Generale analyze the outlook for USD/MXN.
Risk of a deeper downtrend only if it declines from the July low at 16.60
So far, USD/MXN has carved a higher low near 17.00 compared to July’s low near 16.60. It has gradually established itself above the 50-DMA, denoting receding bearish momentum. This is also evident in the daily MACD, which has crossed above the balance line.
The defense of 17.00 could lead to a short-term bounce towards 17.42 and the recent pivot high at 17.64/17.70, which is also a multi-month downtrend line. This is crucial resistance.
Only if the July low at 16.60 is violated would there be a risk of a deeper downtrend.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
