Economists at Société Générale analyze USD/MXN technical outlook.

Receding downward momentum

USD/MXN deepened its downtrend towards potential support zone of 16.60/16.40 representing intermittent projections and a multiyear trend line. An initial bounce has led the pair towards July high of 17.40. 

Daily MACD has been posting positive divergence denoting receding downward momentum. 

If it overcomes the hurdle at 17.40, an extended rebound is likely; next objectives could be at 17.80 and April low of 18.00.