USD/MXN is drifting towards the crucial support zone of 20.25/20.10 representing the 200-day moving average (DMA) and the trend line drawn since June 2021. A break below here would open up last year lows at 19.60/19.53, economists at Société Générale report.

Break above 21.00 is crucial to re-establish upward momentum

“A short-term bounce is not ruled out however a break above graphical levels of 21.00 is essential to re-establish upward momentum.”

“If support at 20.25/20.10 gets violated, there will be a risk of an extended down move towards 19.85 and last year lows at 19.60/19.53.”