USD/MXN: A move beyond 17.85/18.00 could result in an extended rally towards 18.25 and 18.60 – SocGen

USD/MXN has likely formed a tactical bottom after returning above 17.70 and failing to retrace below 17.00 last week, economists at Société Générale report.

Recent pivot low at 17.00 is key support

USD/MXN has staged the expected rebound after carving out higher trough near 17.00 earlier this month. It is now challenging the 200-DMA and the trend line drawn since July 2022 at 17.85/18.00. This could be an intermittent hurdle. 

A large downside is not envisaged; recent pivot low at 17.00 is key support. 

A move beyond 17.85/18.00 could result in an extended up move towards 18.25 and 18.60, the 76.4% retracement from March.