USD/MXN: Scope to extend the gradual decline to the 2017 low at 17.4395 – Credit Suisse

USD/MXN is seeing a gradual grind lower, which analysts at Credit Suisse think is likely to extend to 18.5155/17.4395.

Key resistance aligns at 19.9131/9482

“With the USD having peaked, we think the broader risk is likely to stay mildly lower during Q1 of 2023 and we thus see scope to extend the gradual decline to the 2020 low at 18.5155, where we think a potentially tougher support is likely to be found. Should this also break, next key support is identified at 17.4395 the 2017 low.”

“Initial key resistance is located at the recent high and 200DMA at 19.9131/9482, though only above the downtrend from late 2021 at 20.2145 would instead indicate that a more rangebound phase is emerging.”