USD/MXN to extend its rebound towards the 21.65 mark – SocGen

USD/MXN has evolved within a consolidation since November last year forming a double bottom at January lows of 19.60/19.53. Economists at Société Générale expect the pair to extend its positive momentum and break above the 20.76/85 region.

Holding above 19.80 is critical for further upside

“Daily MACD is entering positive territory denoting upside momentum is regaining. The USD/MXN pair could revisit June high near 20.76/20.85. If this hurdle is overcome, the rebound could extend towards 21.21 and the neckline near 21.65.”

“Consolidation above 19.80 is crucial for further up move.”