According to Societe Generale’s Kenneth Broux, the Mexican Peso has resumed its bullish trend against the US Dollar, with USD/MXN failing to clear its 200-day moving average, thereby maintaining downside momentum for the currency pair [1]. The pair is currently attempting to break the lower end of a multi-month trading range, with resistance identified at 17.17. Broux notes that the inability of USD/MXN to surpass this resistance level could result in a further decline, with downside objectives projected at 16.65 and in the 16.50/16.25 range [1].
The analysis highlights that carry demand and low volatility continue to support the Mexican Peso within the broader emerging markets space [1]. The recent price action, where USD/MXN struggled to overcome the 200-day moving average during a rebound attempt, underscores the prevailing downward momentum [1].
No specific market reactions or analyst opinions beyond Societe Generale’s technical outlook are provided in the article. There are no forward-looking statements regarding macroeconomic factors or policy changes, and no ticker symbols are mentioned [1].
CONCLUSION
Societe Generale’s technical analysis points to a resumption of the Mexican Peso’s bullish trend against the US Dollar, with key resistance at 17.17 and downside targets as low as 16.25. The market takeaway is that carry demand and low volatility continue to favor the Peso, suggesting further potential for appreciation if current trends persist.