The Mexican Peso rallied to 17.26 against the USD, the strongest level since May 2016. Economists at Société Générale analyze USD/MXN technical outlook.

Signals of a meaningful rebound are not yet visible

USD/MXN failed to overcome its 50-DMA near 18.00 recently and has cut below the low of last month denoting resumption in downtrend. 

Daily MACD has started posting positive divergence however signals of a meaningful rebound are not yet visible. 

Holding below the peak formed last week near 17.60, the pair is expected to head lower. Next potential objective is at 2016 low of 17.10/16.95