USD/MXN to resume the downtrend towards the 20.26 support – Credit Suisse

USD/MXN is under pressure with the US election still in the balance. A clear victory of the former Vice-President Joe Biden is set to open the path to the downside with next support seen at 20.26, per Credit Suisse.

Key quotes

“With the results of the US election still yet to be confirmed, we watch currencies such as USD/MXN closely as to a guide to the eventual outcome. The sharp strength on election night has been aggressively reversed, breaking beneath the late September low at 20.83.”

“A closing break below 20.83 would resolve the range to the downside, most likely as a result of a clear Biden win, opening the door for a more decisive move lower, with support then seen next at 20.26, then 19.66.”