USD/MXN remains within the broader medium-term range and analysts at Credit Suisse look for the market to remain in relatively balanced state in Q2 as well. Nonetheless, a break below 19.3843 would warn of further weakness.

January 2021 low and the uptrend form 2017 at 19.6550/3843 to serve as a solid floor

“We expect the January 2021 low and the uptrend form 2017 at 19.6550/3843 to serve as a solid floor for the recent weakness, with a bounce-back higher likely to take place in case this level is reached.” 

“A break below 19.6550/3843 would see scope to fall all the way back to 18.6082/5155, which includes the 2020 low and the 50% retracement of the uptrend from 2011.”