USD/MXN downtrend set to resume – Société Générale

USD/MXN remains under pressure after confirming a breakdown from a multi-month consolidation. With a rounding top in place and resistance capped at 19.44, the pair appears poised to resume its downtrend toward key support levels, Société Générale's FX analysts note.

Resistance at 19.44 holds firm

"USD/MXN formed a rounding top and broke down from a multi-month consolidation resulting in a steady downtrend. The decline has stalled after reaching interim low near 18.82. The pair has struggled to overcome recent pivot high of 19.44, which remains a short-term resistance."

"The phase of down move is likely to extend. Next objectives are located at the August 2024 lows of 18.60/18.41 and projection at 18.15."