USD/MXN traded below 17 on Wednesday. Economists at Société Générale analyze the pair’s technical outlook.

Signals of a meaningful rebound are not yet visible

USD/MXN has experienced a relentless downtrend after breaking below the sideways consolidation during 2021/2022. The move is a bit stretched however signals of a meaningful rebound are not yet visible. 

Next potential supports are located at projections of 16.95 and 16.60/16.40. 

The 50-DMA at 17.50 is short-term hurdle. The pair must re-establish above this to affirm an extended bounce.