USD/MXN breaks key support zone – Société Générale

USD/MXN has broken below a key consolidation range, forming a bearish rounding top pattern and signaling further downside risks toward multi-month lows, Société Générale's FX analysts note.

Rebound likely capped below 19.85

"USD/MXN broke the lower limit of a multi-month consolidation and has formed a rounding top pattern which generally points towards potential downside. It is now challenging the trough of last week near 19.30."

"If a brief rebound develops, lower end of previous range at 19.67/19.85 could cap upside. Next objectives could be located at last September / October lows of 19.10/19.00 and 18.70."