USD/MXN has continued to fall after failing to hold above the 50-day moving average, with the pair testing support near 17.85–17.80. While momentum indicators hint at potential stabilization, a break below current levels could open the door toward the July 2024 lows around 17.60, Société Générale's FX analysts note.

Peso strengthens as pair nears key support

"USD/MXN has extended its decline after failing to establish above the 50-DMA (currently near 18.22). The pair has tested interim projections at 17.85/17.80. While the daily MACD continues to show positive divergence, clear signals of reversal are not yet visible in price action."

"If a short-term bounce occurs, the moving average around 18.22 is likely to act as resistance. Failure to overcome this may lead to continuation in down move. The next objective could be located at the July 2024 lows near 17.60."