Societe Generale analysts note that the USD/MXN pair has formed a ephemeral low near 17.10 and is in a short-term rebound as part of a broad consolidation. The 18.00/18.20 area, aligned with the 200-DMA and the January high, is highlighted as key resistance. A break below the support at 17.44 would risk resuming the broader downtrend.
Rebound circumscribed by key resistance band
“For Mexico, we estimate unchanged at 7.0%. Headline CPI accelerated to 4.63% year-on-year in the first half of March, well above Banxico’s target of 3%. Market consensus is for an extended pause until evidence emerges that inflation is returning to 3%. Inflation forecasts and guidance will be updated.”
“The USD/MXN pair made a temporary low near 17.10 in February and has since begun a short-term rebound. The 18.00/18.20 zone, which corresponds to the January high and the 200-DMA, could act as a temporary resistance zone.”
“So far in March, the pair has traded in a wide consolidation range. The lower end of this range, near 17.44, provides important support. A break below may indicate a risk of a continuation of the downtrend.”
(This article was created with the aid of an artificial intelligence tool and has been reviewed by an editor.)
