USD/MXN to head towards last year high of 22.16 on a move beyond 21.40/21.44 – SocGen

USD/MXN has reached interim resistance of 21.40/21.44, the 61.8% retracement from November. A break beyond here can lead the pair towards 21.70 and last year's high of 22.16, economists at Société Générale report.

January peak of 20.91 offers support

“An initial pullback is not ruled out, however, January peak of 20.91 is likely to provide support. Defending this can lead to continuation in bounce.” 

“A move beyond 21.40/21.44 can lead the pair towards 21.70 and last year's high of 22.16.”