• USD/MXN edged higher on Tuesday as markets digested the latest twists in President Trump’s tariff saga and remained optimistic about securing more trade deals before the deadline.
• President Trump escalated his trade war on Monday, unveiling hefty tariffs—25% on imports from countries like Japan and South Korea and up to 40% for nations including Laos and Myanmar—affecting 14 trading partners.
• The shift of the deadline from July 9 to August 1 granted a three-week reprieve for affected nations to negotiate trade agreements with the United States, stirring fresh market turbulence.
• So far, only Britain and Vietnam have secured trade agreements, while in June, Washington and Beijing agreed on a framework deal addressing tariff rates, temporarily restoring a fragile truce in their ongoing trade dispute.
• Immediate resistance is located at 18.751(38.2%fib), any close above will push the pair towards 19.000(Psychological level).
• Support is seen at 18.491 (Lower BB) and break below could take the pair towards 18.371(23.6%fib).
Recommendation: Good to sell around 18.750 with stop loss of 19.300 and target price of 18.300
