USD/MXN: Rebound faces 200-DMA hurdle – Societe Generale
Societe Generale analysts note that USD/MXN has formed an interim low near 17.10 and is in a short-term rebound within a broad consolidation. The 18.00/18.20 area, aligned with the 200-DMA and January peak, is highlighted as key resistance. A break below 17.44 support would risk resuming the broader downtrend.
Rebound capped by key resistance band
"For Mexico, we pencil in no change at 7.0%. Headline CPI accelerated to 4.63% yoy in first half of March, well above the 3% target of Banxico. Market consensus is for an extended pause until evidence emerges that inflation is converging back to 3%. Inflation forecasts and guidance will be updated."
"USD/MXN established an interim low near 17.10 in February and has since embarked on a short‑term rebound. The 18.00/18.20 zone which corresponds to the January peak and the 200‑DMA, could act as an interim resistance zone."
"So far in March, the pair has evolved within a broad consolidation range. The lower boundary of this range, near 17.44, serves an important support. A break below this may denote risk of extension in the downtrend."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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