USD/MXN rebounded from a five-year low of 17.90. Economists at Société Générale expect the pair to suffer another substantial drop only on a break under 17.90/60.

19.40/19.65 could be an important resistance near term

“USD/MXN has eventually defended the earlier highlighted support zone of 17.90/17.60 representing the low of 2018 and more importantly the trend line connecting troughs of 2008 and 2013. A phase of consolidation is not ruled out after a V-shaped bounce.”

“The trough of May 2022 near 19.40/19.65 which is also the 200-DMA could be an important resistance near term.”  

“Only if the pair breaches the support zone at 17.90/17.60, would there be a risk of next leg of downtrend.”