USD/MXN: The hurdle at 18.48/18.60 must be overcome to denote a larger uptrend – SocGen

USD/MXN can see a pullback after approaching trend line near 18.48/18.60, economists at Société Générale report. 

Short-term pullback

USD/MXN has experienced a steady rebound after forming a trough near 16.60 earlier this year. It recently overcame the 200-DMA and approached the trend line drawn in November 2021 at 18.48/18.60. 

Daily MACD has turned flat and has dipped below its trigger line denoting receding upward momentum. 

The hurdle at 18.48/18.60 must be overcome to denote a larger uptrend.  

A short-term pullback can’t be ruled out; the MA near 17.70 is likely to be first layer of support.