Societe Generale notes USD/MXN failed to breach its 200-day moving average, targeting support levels at 16.65 and 16.25.
The Mexican Peso resumed its downtrend against the US Dollar as USD/MXN struggled to clear its 200-day moving average. The pair is testing the lower end of a multi-month range, with resistance at 17.17 and downside targets at 16.65 and 16.50/16.25.
Recent attempts to rebound faltered below the 200-day moving average, reinforcing downward momentum. The high of 17.17 reached earlier this week remains a key resistance level, with failure to break above it likely extending the decline.
Carry demand and low volatility continue to support the Peso within emerging markets, keeping pressure on USD/MXN. Analysts project further downside if the range floor breaks.